Cashaa CEO: Indian government hopes to combat crypto scams with proposed ban

Kumar Gaurav, founder and CEO of cryptocurrency exchange Cashaa, believes that the Indian government’s latest efforts to regulate digital currencies are more about preventing illegal activities in the crypto industry rather than an outright ban on cryptocurrencies.

According to an announcement from the Indian Parliament on Friday, the Parliament will consider a bill that aims to "ban all private cryptocurrencies" while also creating a regulatory framework for the digital rupee issued by the Reserve Bank of India (RBI). The RBI announced last week that it would "explore the possibilities of digital currencies." However, the bill also states that it will allow "certain exceptions to promote the underlying technology of cryptocurrencies and their use."

In a statement shared by Gaurav with Cointelegraph, the Cashaa CEO said that given that cryptocurrency is a global and decentralized system, “it is impossible for any government” to ban it. However, he was unsure what the Indian parliament was referring to by “private cryptocurrencies.”

“They can certainly ban the legal use of cryptocurrencies, which would just make it difficult for a normal person who doesn’t understand cryptocurrencies to participate in it,” Gaurav said. “However, from what we know, the Indian government is trying to crack down on scams being done in the name of Bitcoin.”

He added:

“We believe the government will introduce regulations and policies to control fraud and allow the industry to innovate and thrive.”

The Indian government has a complicated relationship with cryptocurrencies. The country’s Supreme Court effectively overturned the Reserve Bank of India’s nearly two-year-old blanket ban on crypto businesses. While the Indian parliament has largely refrained from taking a firm stance on regulating digital currencies since then, reports in August suggested that the Indian parliament was working to ban cryptocurrencies.

As part of its session, the proposed Cryptocurrency and Formal Digital Currency Regulation Bill is being considered by the Rajya Sabha, the upper house of India’s parliament. India’s National Democratic Alliance’s Bharatiya Janata Party currently controls both houses of India’s bicameral legislature. (Cointelegraph)