Cryptocurrency Ban in India: What Are Private Coins? All you need to know

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Cryptocurrency Ban in India: What Are Private Coins? All you need to know

Highlight

  • The government will introduce the Regulation of Cryptocurrency and Official Digital Currency Bill in Parliament.
  • The bill seeks to ban all private cryptocurrencies in India.
  • The government is planning to allow only certain cryptocurrencies in the country.

Cryptocurrency Ban in India: Amid growing concern over serious threats to the country’s macroeconomic and financial stability, the Center on Tuesday listed a bill to ban all private cryptocurrencies, with few exceptions, for introduction in Parliament. This means that no person shall mine, buy, generate, hold, sell, deal, issue, transfer, dispose of or use cryptocurrency, the bill proposes.

‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’, to be introduced in the Winter Session of Parliament beginning November 29, “seeks to create a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India”. India.

The bill also seeks to ban all private cryptocurrencies in India. However, it allows some exceptions to promote the cryptocurrency and the technology underlying its use. Currently, there is no regulation or any restriction on the use of cryptocurrencies in the country.

Notably, over the years, cryptocurrency has gained a lot of momentum and is attracting the attention of a large number of Indian investors. Crypto coins like bitcoin, ethereum, dogecoin, shiba inu are among the popular cryptocurrencies that are known to all. However, there are a large number of cryptos that are sold based on their privacy factor.

What is private cryptocurrency?

There are many private coins that host a host of built-in privacy features and even hide the identities and activities of users. The difference between private and public cryptocurrencies is confusing for many. A private cryptocurrency uses a number of cryptographic measures to hide this information. This means, on a network of private cryptocurrencies, the wallet address will be masked or hidden and transaction details can be hidden and so on. This allows users a level of privacy not available with their “public” counterparts. It is said that all top private coins block many hacking attempts.

while in the case of public cryptocurrency, transactions taking place on such networks can be traced or linked to the wallet address, and even their amount can be understood. Wallet addresses associated with users can still be configured through a trace.

Meanwhile, speaking to India TV on private cryptocurrencies, Hitesh Malviya, Founder, ItsBlockchain said, “Banning such privately owned cryptocurrencies is a good move.

“Different interpretations of the definition of private cryptocurrencies by the media, and influencers have fueled this climate of fear among retail crypto investors. To my understanding, bitcoin, ethereum and other popular cryptocurrencies cannot be held by any private entities. Not controlled or managed, transactions are on the public ledger, and they are recognized as public cryptocurrencies in every major economy,” said Hitesh Malviya, founder, itBlockchain, India’s first and oldest blockchain cryptocurrency publication.

“But on the other hand, there is a good number of cryptocurrencies being promoted in the country by MLM companies, private companies, this type of cryptocurrency has been subjected to some big scams in the past. So if the government is on such privately owned cryptocurrencies If you are thinking of imposing a ban, it is a good step,” Malviya said.

Meanwhile, Malviya also appealed to crypto investors to not panic and wait for the passage of the regulation bill.

“My appeal to investors is, don’t panic, sell and wait for the regulation bill to be passed in the winter session and you will get an idea about the future of crypto investment in India,” urged the founder of ItsBlockchain.

On paying taxes on crypto profits, Hitesh Malviya said, We need to create a dedicated framework for crypto investment in India so that every citizen is kept in the same loop.

“Some crypto investors are still paying capital gains tax on their crypto investment gains from last year, but we need to create a dedicated framework for crypto investment in the country so that every citizen should be in the same loop when When it comes to paying taxes on crypto gains,” he said.

List of private cryptocurrencies:

Currency (XMR)

dash coin
Zcash (ZEC)
The Verge (XVG)
Ray
grin
Horizon (Zen)
Bytecoin (BCN)
firo (firo)
Super Zero Protocol (SERO)
BTCX India
ucoin
delta

Also read: Govt to bring bill to ban cryptocurrency, RBI’s digital currency to go ahead

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