The creator of India's crypto bill, former Finance Secretary Subhash Garg, dismissed the notion of banning "private cryptocurrencies" every bit a misinterpretation while highlighting the enormous potential of cryptocurrencies and blockchain engineering science.

The parliamentary discussions around a controversial crypto bill sparked fears around the ban on cryptocurrencies, with no clear indication about the ban's scope. Every bit Cointelegraph reported, an episode of panic selling among Indian investors followed the annunciation. In an interview with local news channel News 18, Garg clarified:

"[The description of the crypto bill] was perhaps a mistake. It is misleading to say that private cryptocurrencies will be banned and to intimate the government about the same."

He believes that the Indian government should formulate a bill after discussing it with stakeholders and crypto investors. Furthermore, the bill suggests banning private cryptocurrencies without clarifying what the word "private" stands for.

As a result, the crypto community in India self-interpreted two different versions of the neb'south calendar — one that considers banning all not-regime issued cryptocurrencies and the other that excludes cryptocurrencies running on public blockchains such as Bitcoin (BTC) and Ether (ETH).

Garg also pointed out a flaw in classifying cryptocurrencies as assets after underscoring the vast ecosystem powered past disruptive engineering science. He likewise said that crypto exchanges take express interests and do not represent the entire community:

"Yous don't allocate the wheat that you produce, you don't classify the clothes y'all produce, equally assets. That is too much of oversimplification to treat this every bit an asset."

On an cease annotation, Garg added that the central bank digital currency initiatives, especially in countries such as India, are complex. According to him, the authorities beginning needs to address challenges, including the unavailability of smartphones and digital wallet issuance.

Related: Singaporean crypto exchange enters India amid regulatory uncertainty

The Indian crypto market continues to concenter international firms, with the latest beingness Coinstore, a Singaporean crypto exchange. As Cointelegraph reported, Coinstore has allocated a $20-million fund to fix three new offices in the region.

Speaking to Cointelegraph, a Coinstore spokesperson was hopeful for the evolution of a positive crypto regulatory framework:

"Strict KYC process, security requirement for exchanges, as well as gradual regulation of sure cryptocurrencies naturally protect the Indian users and would clarify the legality of certain cryptocurrencies."