WazirX founder Nischal Shetty believes that the recent IMC (Inter-Ministerial Committee) report put forward by the Indian government calling for a complete bitcoin and crypto ban in India drew its conclusion from inaccurate assumptions.
Indian Authorities Don’t Know What Crypto is
Tweeting on Tuesday (July 23, 2019), the bitcoin exchange founder described the report by the inter-ministerial committee (IMC) calling for a crypto ban in India as being flawed.
1/ The Crypto report is FLAWED right from the beginning. It wrongly states that every crypto is a “currency” & goes on to formulate suggestions on that flawed assumption
Report wants to criminalise the youth,Innovators,investors
Dear @nsitharaman @narendramodi #IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) July 23, 2019
For Shetty, members of the committee drew on flawed assumptions in coming up with their conclusions.
For one, the IMC characterized cryptos as being “private currencies” — a classification meant to put the entire asset class in direct conflict with the Indian rupee. Lawmakers in the country have even called for a crypto ban as a way of preserving rupee monopoly.
Other jurisdictions like the U.S. have seen it fit to classify cryptos as commodities making them an investment asset.
The WazirX chief believes the decision isn’t a mistake. Rather, it is an attempt to criminalize digital innovation.
Shetty advised the government to form a standing committee on cryptos — a recommendation also present in the IMC report. The WazirX founder also warned that going forward with the crypto ban would have devastating consequences for the country.
Banking Cabal Behind Crypto Ban Push
Shetty’s accusation of a crypto ban decision being based on flawed logic isn’t a new development in India. Back in 2018, several crypto stakeholders accused the central bank of not conducting thorough research before banning banks from offering services to crypto exchanges.
Now, there are reports that the Reserve Bank of India (RBI) — the country’s central bank, was the major driving force behind the IMC’s recommendation for a crypto ban.
The WazirX CEO has previously berated the RBI for being obtuse about cryptos.
What Happens if India Goes Through with Bitcoin Ban?
On the subject of the consequences of a possible total crypto ban in India, Twitter user ‘DesiCryptoHodlr’ is of the opinion that the entire industry would feel the effects of such an action.
World is about to lose
5,000,000 Crypto Investors
12,500 Blockchain Developers
25 Exchanges, employing 100s
7.4% of all Binance visitors
Nation with leading #Bitcoin tweets
If India bans Crypto, it affects everyone
Don’t let it happen, step in, join our fight #IndiaWantsCrypto
— Shalini⚡ (@DesiCryptoHodlr) July 23, 2019
More exchanges would shut down, likely putting hundreds of people of jobs. The fear of prosecution and prison sentences could also see a massive brain drain out of the country.
However, whether the entire industry would feel the effect is debatable. China’s crypto trading and ICO ban did little to slow the progress of the emerging market. It stands to reason that India’s ban wouldn’t negatively impact the industry as much.
Do you think the Indian government will cave to the pressure from stakeholders or move ahead to ban bitcoin and cryptos entirely? Let us know in the comments below.
Images via Twitter @NischalShetty and @DesiCryptoHodlr.
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Author: Osato Avan-Nomayo