India does not plan a general ban on cryptocurrencies

Finance Minister confirms: India does not plan a general ban on cryptocurrencies

Minister Nirmala Sitharaman signals openness and rather wants to give the crypto industry „room for experimentation“.

Reports of an Indian general ban on cryptocurrencies are proving to be scaremongering (FUD) after all.

As Indian Finance Minister Nirmala Sitharaman confirmed in an interview with CNBC yesterday, the media reports about a planned general crypto ban are clearly exaggerated. Although there are still fierce negotiations going on Bitcoin System behind the scenes to regulate the crypto industry, she herself expects a moderate outcome.

„Yes, there is a lot of negotiation, there is a lot of discussion, first and foremost with the central bank,“ Sitharaman says. To which she adds, „Of course, the Reserve Bank of India will take the lead in deciding which cryptocurrencies will be allowed and how they will be regulated, but we want to ensure as a government that there is enough room for all kinds of experimentation in the crypto industry.“

Accordingly, she stresses that any crypto regulation will be far less „stringent“ than has often been previously rumoured. Regulators would rather have to orientate themselves on their own country, not on the still very mixed bag that is spilling over from the rest of the world on the topic of cryptocurrencies. In conclusion, the Finance Minister states:

„Technological progress is furious. But that is why we must not react in a negative way. […] Let me put it this way, we are not closing our minds, we will look at how we can enable experimentation in the digital world, in the crypto world.“

Finance Minister @nsitharaman says „Govt. wants to ensure there’s a window for experiments in cryptocurrency space“. ⁰Time for India to innovate and shine!@FinMinIndia pic.twitter.com/fbSH2hzTC4
– BlockchainedIndia (@blockchainedind) March 6, 2021

Sitharaman’s comments should come as a huge relief to the crypto community in the world’s second most populous country.

Just this month, Bloomberg had fuelled the narrative around a blanket ban, with a former finance minister of India confirming the alleged ban to the paper

For some time now, the discussion on the matter has been a source of fuel in the crypto industry, with one expert seeing the effort as a desperate attempt at regulation that would be comparable to an attempted ban on the internet. At least some Indian crypto companies have not been deterred by this and have continued their business.