India defers crypto ban according to a report by Cointelegraph. The crypto community was encouraged to find that the draft bill for the crypto ban was not included in the winter session agenda.
While there was no indication about the stance of the government of India towards cryptocurrencies, the community in the country are hoping that this will result in a positive attitude. However, the bill could be introduced at a later stage. The RBI circular banning the use of cryptocurrency by any banks in India has also been challenged in the Supreme Court. However, little respite is expected from the Judiciary as the definitions of cryptocurrencies have not been legally framed. The hearings have been adjourned multiple times since the start of litigations.
Sohail Merchant, CEO of Indian crypto exchange Pocketbits, considered the news a temporary relief, stressing that the community now has more time to circle the wagons and protect the industry. He tweeted:
“Draft Bill for Banning of Crypto is not on the Agenda for Parliament Winter Session. Relief for now, but use this time to come together and present our case to the regulators. Forget competition/ego & echo our thoughts with a single voice.”
Nischal Shetty, CEO of Wazirx crypto exchange, said that the delay is great news for the crypto ecosystem in India, suggesting that the government is taking more time to reevaluate the complete ban of crypto:
“Great to see Indian Government not rushing into this. They’re listening.”
India’s potential ban on crypto has been widely criticized by investors in the industry. In late October, billionaire venture capitalist Tim Draper called on prime minister Narendra Modi to reconsider the country’s hostile stance on crypto. The famous Bitcoin bull argued that India was leaving itself vulnerable to corruption by trying to ban crypto.
Earlier today, Cointelegraph reported that India is one of the five BRICS countries considering the launch of a new cryptocurrency to facilitate settlements between member countries. India defers crypto ban possibly paving the road for a positive attitude towards crypto currencies.
A government panel in India has issued a recommendation to ban all “cryptocurrencies created by non-sovereigns,” a step which could be applied to Bitcoin.
“The Committee notes with serious concern mushrooming of cryptocurrencies almost invariably issued abroad and numerous people in India investing in these cryptocurrencies. All these cryptocurrencies have been created by non-sovereigns and are in this sense entirely private enterprises,” their report reads.
The panel said anyone dealing with digital currencies of any kind could face 10 years behind bars and be handed hefty fines.
As part of its recommendation, the panel laid out the reasons why cryptocurrencies should be banned.
“The Committee notes with serious concern mushrooming of cryptocurrencies almost invariably issued abroad and numerous people in India investing in these cryptocurrencies. All these cryptocurrencies have been created by non-sovereigns and are in this sense entirely private enterprises,” the report says.
“There is no underlying intrinsic value of these private cryptocurrencies. These private cryptocurrencies lack all the attributes of a currency. There is no fixed nominal value of these private cryptocurrencies i.e. neither act as any store of value nor they are a medium of exchange,” it adds.
Therefore, it continues, “the Committee is of the clear view that the private cryptocurrencies should not be allowed. These cryptocurrencies cannot serve the purpose of a currency. These cryptocurrencies cannot serve the purpose of a currency. The private cryptocurrencies are inconsistent with the essential functions of money/currency, hence private cryptocurrencies cannot replace fiat currencies.”