Do not Panic! Trust the Lawmakers.

By November 24, 2021November 25th, 20213 minute read
#IndiaWantsCrypto

Dear Tribe!

I heard a few of you are worried. Why so? Please read on to understand why this period is not the time to panic but to keep calm and hold on. 

On 23 November 2021, the news broke out that the Indian government will table the much-awaited crypto bill this winter session which is scheduled to start on 29 November 2021. 

While there are uncertainties around the regulation, here are some points you need to consider:

  • The proposed bill bears the same description that was supposed to be discussed in March 2021.
  • The crypto markets have recovered (with various ATHs) from then (February 2021) notably. 

This is exactly what our COO, Siddharth Menon says:

  • While the situation is the same as it was in February/March 2021, we are in better shape since then. In fact, we should be glad that this time, crypto as a topic is being discussed on a national level, and there is far greater understanding around this topic and subject throughout the country and within the lawmakers.
  • Our CEO Nischal Shetty also believes that “This is not the end but the beginning of crypto regulations in India”.
  • Sameer Mhatre, our CTO, reiterated that India has a large crypto-economy & regulations can help it grow further in the right direction.

I would uphold Siddharth, Nischal and Sameer’s words and suggest that Please do not panic. Lawmakers understand the growing market. With over 15M+ people owning crypto in India, decisions will be taken keeping the well being of all in mind. 

While this is not financial advice, I would suggest that we all hold on, do not panic sell and wait for more clarity from authorized sources. We are in this together and definitely, #IndiaWantsCrypto!

Background:

The introduction of the crypto bill is a huge moment for India. Here are some noteworthy events in the history of crypto in India:

  • 2018: Banking ban.
  • 2019: News of a draft bill called “Banning of Cryptocurrency and regulation of official digital currency”.
  • 2020: Supreme Court reversing the banking ban.
  • March 2021: Our FM said that India will take a calibrated approach on crypto.
  • November 2021: Parliamentary Standing Committee invited a public consultation.
  • November 2021: Our Prime Minister himself came forward to call for crypto regulations in India.
  • November 2021: Listing of “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021″.

Our nation has come a long way in these 3 years! While the description of the draft bill appears to be the same as it was in January 2021, several important events have occurred since then. To add, on several occasions, Mr Subhash Chandra Garg has also mentioned that there should be a prohibition on the “currency” use case of crypto.

Crypto can be classified as a currency, asset, utility, or security. So, “currency” is one of the many use cases of crypto. As an industry, we all adhere to the fact that INR is the only legal tender in India and about crypto being an asset/utility which people buy and sell. If tabled in the Parliament, there will be discussions and deliberations around this bill. The process of crypto regulation is in the works, and we need to have faith in our lawmakers. Let’s not panic!

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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