Crypto kanoon made this tweet today
https://twitter.com/cryptokanoon/status/1355202893901561860?s=20 according to this, Government of India is planning to out blanket ban on all crypto currencies.
Do you think this will happen? What should we do in such circumstances? Should we sell all out crypto?

Well, this was unexpected. The information I got from my source was different. It's bad to see that government is still skeptical about cryptocurrencies. I am not very positive about the word 'private'. I don't think government is being technical here and referring to privacy coins. The term 'private' here, more or less referring to the general meaning i.e. the ownership other than that of government.

I am also not very positive about the term 'exceptions'. I don't think it is being used to exclude some of the current coins like bitcoin from the ban. Rather, it would allow certain class of people to create cryptocurrencies. I think this is a kind of corporate favouritism. Since most of the big companies in India have already invested alot in blockchain technology, government will allow them to host their own coins. (Government being controlled by the corporate, this isn't something new we are witnessing, right?).

Anyhow, the details of bill still isn't available in public domain. Let see what it contains when it will be presented in Parliament.

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The image is not from the official bill. It's rather a list containing all 20 bills to be presented in upcoming Budget Session. Such mistake can happen, nothing special.

Due to the anonymous nature of BTC, I think yes people can still hold and trade it on dex or exchanges that do not require kyc buy it is going to be risky affair. I don't advice to do anything against law.

I posted about the ban last week but webtricks mentioned that it's not gonna happen and government will come up with some clear regulations for crypto currency and though personally I even believed that because a large population of india uses it. But today I read this article
https://www.livemint.com/market/cryptocurrency/government-lists-bill-to-ban-bitcoin-in-india-create-official-digital-currency/amp-11611943365545.html
and then I saw this thread.
Budget will be presented on Feb1. I still feel strongly that they won't ban BTC but it's Indian government you really can't expect anything. We can just hope that they don't ban it. 🤞🤞

China has tried banning crypto MULTIPLE times in the past though. A lot of dips in Bitcoin in the past have been due to the FUD caused by news of crypto ban by China. Still, there exists a banking ban on crypto in China, according to Wikipedia. (Source: Legality of BTC by country)


You should also take a look at Nepal, where there has been an absolute ban on BTC from 2017. There's a pretty decent chance that India follows in those footsteps for the foreseeable future.

Okay, so Arun Jaitley formed a committee to evaluate the position of cryptocurrencies in India. The committee submitted its results in the form of the bill named as 'Banning of Cryptocurrencies and Regulation of Official Digital Currency, 2019' in 2019. That bill rooted for the blanket ban on cryptocurrency with 10-year jail and Rs. 2 crores fine on using, sending, selling, buying and mining cryptocurrency. However, the government didn't present that bill in houses (I think due to strong opposition from corporate).

Hence, the government modified the bill and finally listed it as the agenda for the upcoming Budget session and named the bill, "Cryptocurrency and Regulation of Official Digital Currency, 2021". They removed the word Banning.
But the three-line explanation of bill includes following basic points:

1. Banning of all private cryptocurrencies
2. Exception for few cryptocurrencies
3. Regulation for CBDC.

Now we are still not sure about the word private and exception. It may or may not mean the banning of bitcoin, etc.

We just know this much. So I am pretty sure Nirmala Behen Ji will mention the bill and give more explanation about the bill in the upcoming budget speech on 1st Feb. Till then lets peace out and don't panic.
                         
       
                                                        source - webtricks, Google

Some positive hopes are circulating in the Indian crypto communtiy as the big heads are taking their stands on regulation instead of banning cryptocurrencies.
Just look out how Zebpay is trying to spread positive awareness about the current situation instead of other media spreading FUD.


 


Twitter thread : https://twitter.com/zebpay/status/1355519515941982216

Also read an article on moneycontrol on how entrepreneurs are motivated towards the usage of blockchain as a technology and how they don't want cryptocurrencies to be banned as a whole but regulated under the Government of India.

https://www.moneycontrol.com/news/business/regulate-instead-of-banning-cryptocurrencies-in-india-say-entrepreneurs-6420801.html

This just makes my intuition stronger towards the Government not banning cryptocurrencies in the long term.
Interesting debates might occur in the budget session which is why we all must keep an eye on it.

It can very much happen! Especially with the current regressive government, it definitely can! That's why I have been saying - if the government doesn't show any interest on cryptos, we will be safe! The moment government starts looking into it, it will be a blanket ban only! That's what happens when uneducated persons and criminals make policy decision!

However, CryptoKanoon also tweeted this,

https://twitter.com/cryptokanoon/status/1355895598860255240

And that's true! It's difficult to enforce such law!

Right. This will instill fear in everyone mind. Only real criminals would want to hold Bitcoin once ban is introduced. This is not the right decision by government buy then this regime is known to make laws which are against common man.

Technically you will be criminal by breaking a law. That's what point here is. Government is making all crypto lovers criminal by passing a law that will only harm the country and take it backwards.