indian crypto

Indian crypto ban reports are ‘clickbait,’ says local source

The draconian bill introduced in 2019 by former finance secretary Subhash Chandra Garg to ban cryptocurrencies in India has haunted crypto enthusiasts and entrepreneurs in the country to this day.

Reports on the further development of the bill and the possible introduction of it as law by Bloomberg. And the local news outlet Economic Times has only caused more panic and anxiety within the crypto community.

These reports have always cited “people familiar with the development” as saying that the bill will be discussed by the federal cabinet shortly before it is sent for consideration to parliament. Since early June the same statements appear to have been doing the rounds.

These reports suggested a high possibility of a ban on cryptocurrencies in India, without any additional information.

Uncertainty about the bill

However, today there is as much uncertainty about the bill as there was a year ago. The only thing that has changed — also in the Indian cryptocurrency industry’s favor — is that the Supreme Court struck down India’s Reserve Bank’s circular ban on financial institutions dealing with cryptocurrency companies and traders in March.

Subramanian Swamy, a member of the Rajya Sabha Parliament’s ruling party, the upper house of the Indian Parliament, tweeted about the ban’s repeal saying, “SC allows cryptocurrency trading, cancels the 2018 RBI circular.”

Swamy was also quoted as saying “cryptocurrency is inevitable” by a local news outlet. Further refuting claims of a possible ban on cryptocurrency, crypto news outlet The Block recently reported that Swamy had denied hearing of any discussion of a ban on cryptocurrencies:

“It will be madness if they do.”

Speaking to Cointelegraph, Ashish Singhal, the CEO of the CoinSwitch cryptocurrency exchange. Which has its main user base in India. Pointed to the list of bills that will be discussed during Parliament’s Monsoon Session. He said no alleged ban on crypto-trading is scheduled for discussion, as much as one can see from the list.

More by the WazirX founder

The founder of the Indian cryptocurrency exchange WazirX, Nischal Shetty. And the founder of the Indian blockchain research company Crebaco, Siddharth Sogani, also commented on the bill. Saying there was nothing to worry about. There is a long road ahead, according to the execs, before the bill even makes it to parliament.

“It’s too early for the draft crypto bill to be presented to the parliament,” Shetty added.

Calling the recent “clickbait” news articles, Sogani said the Indian crypto community had “reacted to sudden panic. But many Indian crypto users are now used to such clickbait news.”

“The bill was moving for sure a few months ago but I am not sure about the source. Which Bloomberg is discussing at the moment,” he stated.

On the same note, Shetty said it was a recognized fact that “the bill has been with the Ministry of Finance. Since it was submitted to them by the Garg committee.” But the way it was interpreted in the media has caused mild panic within the industry, adding:

“Now everyone knows that it’s ultimately the same information that has been around for a while.”