India to make possession of "unapproved" Cryptocurrency a punishable offence

[drmilind2004]

Here's the link from which I gleaned this particular nugget:

https://qz.com/india/1418897/after-strangling-bitcoin-india-may-launch-its-own-cryptocurrency/amp/

The particularly relevant part runs as follows:

“The panel is also discussing amendment of the Currency Act to make possession of any cryptocurrency, not approved by the government, a punishable offence,” said the government official.

Happy days ahead for Bitcoin if it ends up on the "approved" list, as I guess it well might. Reason: too many Bitcoin hodlers in the political class and the bureaucracy!

[actueal]

The particularly relevant part runs as follows:

“The panel is also discussing amendment of the Currency Act to make possession of any cryptocurrency, not approved by the government, a punishable offence,” said the government official.

So, it is early days yet, there is actually no such law existing as of now.  They are merely thinking of introducing these clauses.  A lot can happen between now and the actual promulgation of the law.

[jseverson]

Happy days ahead for Bitcoin if it ends up on the "approved" list, as I guess it well might. Reason: too many Bitcoin hodlers in the political class and the bureaucracy!

Yeah it wouldn't make sense for them to not approve Bitcoin and approve other alts. This shouldn't affect Bitcoin much. Unless they push through with their state-backed crypto and decide to go after competitors, of course.

That being said, this is ridiculous lol. What makes them think such a rule is justified?

[RocketSingh]

The whole Bitcoin <--> FIAT business will move outside India. Indian Bitcoiners will remain unaffected, but no Bitcoin job will be created in India.

[Herbert2020]

there are a couple of things that need clarifying here in my opinion.
for instance it is all at the talking level and consideration stage. and it has been like this for months. this doesn't seem to be a new thing to me. Indian government has been considering cryptocurrencies for a while now.
additionally what i get from this is that they plan on regulating a handful of cryptocurrencies, or maybe only bitcoin and then ban everything else.
as for their own cryptocurrency, i believe it has been about a year into making. if i am not mistaken the name of this "gov coin" is Lakshmi!

[MainIbem]

All these threats will come to an end one day, and it is very near. It is also and indication of good things because it has moved from ban to punishment of holders of unapproved cryptocurrencies.

Congratulations to all my Indian friends here.

[bitfocus]

I astonish, why Central Indian Authority is acting such dumb! Already their state or Kerala (the state government) is deep into the blockchain and crypto! Central government should learn from them.

[KingScorpio]

Here's the link from which I gleaned this particular nugget:

https://qz.com/india/1418897/after-strangling-bitcoin-india-may-launch-its-own-cryptocurrency/amp/

The particularly relevant part runs as follows:

“The panel is also discussing amendment of the Currency Act to make possession of any cryptocurrency, not approved by the government, a punishable offence,” said the government official.

Happy days ahead for Bitcoin if it ends up on the "approved" list, as I guess it well might. Reason: too many Bitcoin hodlers in the political class and the bureaucracy!

well they evolve clearly into communism, and can soon merge with the naxalites

[dothebeats]

Such rash decisions made by the government. Instead of limiting the channels in which the government could profit, why not amplify it and accept cryptos then collect tax afterwards? With a bunch of cryptocurrency enthusiasts in India, it is in no doubt that most will probably be abiding by regulations and laws as long as it supports their interests regarding crypto. There's really something in India that fascinates me due to their strictness involving bitcoin and other cryptocurrencies.

[ngm22585]

This is not smart on India's part, whatsoever.

[Harlot]

The problem I see here is that they will also have their own cryptocurrency backed by their central bank and this might lead to biases on what's gets in and what gets out in their country. This might be their biggest motive on how they are against crypto exchanges in their country as they want to have full control on their cryptocurrency industry, I don't like this at all as they are doing this for the benefit of their own cryptocurrency which I think won't be successful like the other government backed cryptocurrencies.

[bitcoindusts]

“The panel is also discussing amendment of the Currency Act to make possession of any cryptocurrency, not approved by the government, a punishable offence,” said the government official.

For me, as much as the quoted part feels threatening, this is a positive signal of how the Indian government is ready to embrace cryptocurrency. Here i see a sense of government protection instead of government regulation, a protection intended towards the welfare of their people and of course, a protection for their economic sovereignty.

This part of their proposals is an indicator that the government came to realize that a ban on crypto is not as beneficial as regulating them, perhaps because of the truth that crypto enthusiast will always find ways to stay within the cryptospace no matter the ban.

[Patatas]

The whole Bitcoin <--> FIAT business will move outside India. Indian Bitcoiners will remain unaffected, but no Bitcoin job will be created in India.

One has to be an idiot to do that in India or from Indian exchanges. Glad, I have never used such platforms which are so governed by the authorities. Practically, the corrupt government can't stop bitcoin or the traders just like they're incapable of stopping rape or rapists.

The problem I see here is that they will also have their own cryptocurrency backed by their central bank and this might lead to biases on what's gets in and what gets out in their country. This might be their biggest motive on how they are against crypto exchanges in their country as they want to have full control on their cryptocurrency industry, I don't like this at all as they are doing this for the benefit of their own cryptocurrency which I think won't be successful like the other government backed cryptocurrencies.

The banks are incapable of handling daily transactions or offer secure payment gateway's considering the number of scams online. Creating their own crypto and expecting people to use it is futile.

[jseverson]

For me, as much as the quoted part feels threatening, this is a positive signal of how the Indian government is ready to embrace cryptocurrency. Here i see a sense of government protection instead of government regulation, a protection intended towards the welfare of their people and of course, a protection for their economic sovereignty.

It's over-regulation in my opinion. I have no idea why they would choose to go this far when they can simply regulate how it's used, just like every other country who chose to embrace it. Letting the government arbitrarily decide which coins are legal/illegal is a little overbearing and gives the system more loopholes instead of less. But yeah it's not like it has been decided. I hope they see how crazy it is.

[Micronometer]

It is only normal for a state to make provisions for punishable offence. Unapproved/illegal cryptos might not get the slip in this regard.

[Angleworm]

It is still in discussion that the keeping of unapproved crypto is punishable in India. But still it is sad to hear that they are even thinking of it. Hope it blows out soon.

[Antinomist]

Indian goverment probably perceives crypto as a money laundering tool. Their stance against it tells the tale. Earlier this year the biggest crypto exchange of India was forced to close their operations. Bad news for people out there.

[Symptomatic]

This plan is still in its early stage and a lot can happen in the meantime. It will be interesting to which of the cryptos get approved there.

[squatter]

It's over-regulation in my opinion. I have no idea why they would choose to go this far when they can simply regulate how it's used, just like every other country who chose to embrace it.

I can tell you what won't make it on the list of "approved" cryptocurrencies -- privacy coins. I've been anticipating that one government or another would prohibit them, and this is certainly one route to do that.

[aray80]

It is true that this is a tantrum for Bitcoin to become a digital currency in India, because the Indian government will give equal penalties for its citizens who are seen to conduct transactions in bitcoin