Kumar Gaurav, founder and CEO of cryptocurrency exchange Cashaa, believes the Indian government's latest efforts to regulate digital currencies are more of an try to prevent illicit activities in the manufacture rather than outright ban crypto.

According to a bulletin released by the Parliament of Republic of india on Fri, the governing body will be considering a beak intended to "prohibit all private cryptocurrencies" while also creating a regulatory framework for a digital rupee issued by the Reserve Banking company of Bharat, or RBI. The primal bank appear last week that it would be "exploring the possibility" of a digital currency. However, the nib also says it will allow for "certain exceptions to promote the underlying technology of cryptocurrency and its uses."

In a statement from Gaurav shared with Cointelegraph, the Cashaa CEO said "in that location is no style whatever authorities" can ban crypto given its nature as a global and decentralized arrangement. However, he was uncertain as to what India's parliament was referring to with the term "private cryptocurrencies."

"They tin certainly ban the legitimate use of crypto which will merely make it difficult for a mutual person who does not understand it to get involved in it," said Gaurav. "Still, what we understand is that the Indian government is trying to crack down on scams that are running in the proper noun of Bitcoin."

He added:

"Nosotros are positive that the government volition come up with regulations and policies that volition put control on the scams and permit the innovation in the industry [...] grow and thrive."

India'southward government has had a complicated relationship with cryptocurrency. The country'southward supreme court finer overturned a blanket ban on crypto that the RBI had imposed on crypto businesses for almost two years. Though India's parliament has largely not taken a firm position on regulating digital currency since that time, reports from August suggested that the governing body was working towards banning crypto.

The proposed legislation, the Cryptocurrency and Regulation of Official Digital Currency Bill, is beingness considered in the Rajya Sabha — the upper firm of India'due south Parliament — equally role of its budget session. The Bharatiya Janata Party of the National Democratic Alliance currently controls both houses of the country'due south bicameral legislature.