Government documents from 2022 have been cited past an Indian crypto expert to suggest that the proposed ban on all "private cryptocurrencies" could include just about every crypto.

The Indian authorities this calendar week announced it would introduce the Cryptocurrency and Regulation of Official Digital Currency Beak 2022 when it convenes at the Winter Session on Monday.

The bill seeks a legislative vote on creating an official digital currency while imposing a ban on "all individual cryptocurrencies." Still, there seems to be a lot of defoliation regarding what exactly constitutes a "private cryptocurrency," with some users speculating information technology could refer to "privacy" coins such as Monero (XMR) or Zcash (ZEC).

Naimish Sanghvi, founder of crypto news website Coin Crunch Bharat, explained in a Thursday interview on India Upfront that by the government's definition, private crypto could hateful only about every cryptocurrency there is. He said:

"In the 2022 Department of Economic Diplomacy report on cryptocurrency, they substantially said that everything that is non-sovereign is designated as a private cryptocurrency."

"And by that logic, it means that Bitcoin and Ethereum will come into that definition," he said, adding that "anything issued by the authorities is public and everything issued by individual players is public."

The 2022 study in question recommended that "all private cryptocurrencies, except any cryptocurrency which may exist issued past the government, be banned in India." It stated:

"All these cryptocurrencies have been created by non-sovereigns and are in this sense entirely private enterprises."

Just Rohit Kundliwal, marketing manager at Indian crypto exchange WazirX, urged for calm and downplayed fears of an outright ban.

In a LinkedIn post on Wednesday, Kundliwal pointed out that crypto cannot be banned, only regulated, and that there is no clarity on what constitutes a individual cryptocurrency.

He added that "Shri Narendra Modi, Nirmala Sitaraman, Finance Ministry and many prominent and sane politicians have told multiple times that there will not be a blanket ban on crypto."

Meanwhile, Indian Shiv Sena Fellow member of Parliament Priyanka Vickram Chaturvedi said in a Midweek interview with India Today that the proposed ban is a "motility backward and a piffling as well late." She said:

"Banning private cryptocurrencies is basically ending the entire idea of a new fintech that can emerge equally a huge employment and generator for the new economy."

She said that the government must "facilitate an environs which is evolving and thriving. The impact of doing this... is that y'all are killing this entire space."

Related: India set to reduce GST paid on crypto exchange fees from 18% to ane%

The market reacted dramatically to the news of a possible ban, with prices on WazirX plummeting on Wednesday morning at 3:30 am UTC as users scrambled to sell their holdings. The panic selling consequence tanked the toll of Bitcoin (BTC), Ether (ETH) and Cardano (ADA) in double-digit local cost depreciation.

On Nov. xviii, Indian Prime Minister Narendra Modi called on all democratic nations to work together to regulate cryptocurrency, specifically Bitcoin, to "ensure it does non end up in the wrong hands which can spoil our youth."