India Banning Cryptos

[blackened515]

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?

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[pawanjain]

I was just going to make a post on this topic until I saw your post. But what you are assuming is completely wrong.
They have mentioned to prohibit the use of private cryptocurrencies with a exception of few to promote the underlying technology, which means they will allow certain cryptocurrencies to be regulated.
This doesn't necessarily mean that they will be banning bitcoin.



 


source : http://164.100.47.193/bull2/2021/29012021.pdf

Points to note here are :

Reserve Bank of India is planning to launch their own cryptocurrency.
They are also planning to regulate few cryptocurrencies.
They are going to prohibit the use of most PRIVATE cryptocurrencies (doesn't necessarily mean they will ban bitcoin)

This doesn't mean they will ban most cryptocurrencies, may be they are just banning their use as a legal tender and allow trading of cryptocurrencies.

The next few days are going to be really interesting for the crypto community in India.

P.S : I don't guarantee if the source is true. Even I saw it on reddit a few minutes ago.
There's a spelling mistake in the word cryptocurrency in the last sentence which creates a doubt in my mind if the source is actually true.

[webtricks]

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.

There's a spelling mistake in the word cryptocurrency in the last sentence which creates a doubt in my mind if the source is actually true.

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.

[PhoenixZephyrus]

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.

There's a spelling mistake in the word cryptocurrency in the last sentence which creates a doubt in my mind if the source is actually true.

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.

These were my thoughts too. Even after the RBI's previous bans were overturned, there's again gonna be some kind of banning of crypto. And you bet that the government will start promoting their own/cryptos that are made for certain private companies like crazy. I'm hoping for this to not pass during the Budget Session on 1st Feb, but what the hell, it probably will and that's just sad, even after more people embracing crypto, its still being held in a negative light by the government.

I sure hope trading and exchanges like Binance can still operate in India, atleast let trading be legal. Otherwise this stifles the tech in India in people are just missing out. Here's what I want to know though: Even after the ban, can people still trade on platforms that do not require KYC? Can people keep the BTC that they have currently and use it for BTC transactions, without exchanging for fiat in India?

[blackened515]

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.

There's a spelling mistake in the word cryptocurrency in the last sentence which creates a doubt in my mind if the source is actually true.

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.

These were my thoughts too. Even after the RBI's previous bans were overturned, there's again gonna be some kind of banning of crypto. And you bet that the government will start promoting their own/cryptos that are made for certain private companies like crazy. I'm hoping for this to not pass during the Budget Session on 1st Feb, but what the hell, it probably will and that's just sad, even after more people embracing crypto, its still being held in a negative light by the government.

I sure hope trading and exchanges like Binance can still operate in India, atleast let trading be legal. Otherwise this stifles the tech in India in people are just missing out. Here's what I want to know though: Even after the ban, can people still trade on platforms that do not require KYC? Can people keep the BTC that they have currently and use it for BTC transactions, without exchanging for fiat in India?

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.

[pakhitheboss]

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.

There's a spelling mistake in the word cryptocurrency in the last sentence which creates a doubt in my mind if the source is actually true.

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.

These were my thoughts too. Even after the RBI's previous bans were overturned, there's again gonna be some kind of banning of crypto. And you bet that the government will start promoting their own/cryptos that are made for certain private companies like crazy. I'm hoping for this to not pass during the Budget Session on 1st Feb, but what the hell, it probably will and that's just sad, even after more people embracing crypto, its still being held in a negative light by the government.

I sure hope trading and exchanges like Binance can still operate in India, atleast let trading be legal. Otherwise this stifles the tech in India in people are just missing out. Here's what I want to know though: Even after the ban, can people still trade on platforms that do not require KYC? Can people keep the BTC that they have currently and use it for BTC transactions, without exchanging for fiat in India?

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.

do not yet come to any conclusion, Government has been playing with the mind of the Indian cryptocurrency community since 2018. They have signaled that they will ban it many times but the biggest question arises How?

There are more people on the internet in India than anywhere in the world, Is it practically possible to ban cryptocurrency which is also known as Internet currency. I do not think so!

When Pakistan is trying to regulate and China is also how can you think this Indian government will ban crypto?

[aysg76]

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. 🤞🤞

[pawanjain]

~snip
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. 🤞🤞

That's exactly what I think. I have a strong gutt feeling which tells me bitcoin won't be getting a ban.
I feel this situation is like "Kabhi Kabhi jo dikhaai deta hai voh sach nahi hota" kind of thing. I may be wrong though.
I will still keep my hopes that crypto won't be banned but regulated in a restricted way. May be they allow trading it as an asset and tax it heavily or something.
Just a few days and we will get to know what the actual truth is. But until then, we will come across many theories about how bitcoin will be banned in India 

[PhoenixZephyrus]

do not yet come to any conclusion, Government has been playing with the mind of the Indian cryptocurrency community since 2018. They have signaled that they will ban it many times but the biggest question arises How?

There are more people on the internet in India than anywhere in the world, Is it practically possible to ban cryptocurrency which is also known as Internet currency. I do not think so!

When Pakistan is trying to regulate and China is also how can you think this Indian government will ban crypto?

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)

Financial institutions are not allowed to facilitate bitcoin transactions. Regulation prohibits financial firms holding or trading cryptocurrencies. On 5 December 2013, People's Bank of China (PBOC) made its first step in regulating bitcoin by prohibiting financial institutions from handling bitcoin transactions.

On 1 April 2014 PBOC ordered commercial banks and payment companies to close bitcoin trading accounts in two weeks.

Cryptocurrency exchanges or trading platforms were effectively banned by regulation in September 2017 with 173 platforms closed down by July 2018.

In early 2018 the People's Bank of China announced the State Administration of Foreign Exchange led by Pan Gongsheng would crack down on bitcoin mining. Many bitcoin mining operations in China had stopped operating by January 2018.

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.

[webtricks]

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~~
I sure hope trading and exchanges like Binance can still operate in India, atleast let trading be legal. Otherwise this stifles the tech in India in people are just missing out. Here's what I want to know though: Even after the ban, can people still trade on platforms that do not require KYC? Can people keep the BTC that they have currently and use it for BTC transactions, without exchanging for fiat in India?

I think the upcoming bill i.e. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is the updated version of the bill - Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019 proposed in 2019 by the Committee formed by Finance Ministry. If we go by the old bill then it proposed the ban on holding and selling cryptocurrencies too under Section 8(1). If the new bill has same rules then using platform like Binance and non-KYC exchanges would also be deemed as offence.

do not yet come to any conclusion, Government has been playing with the mind of the Indian cryptocurrency community since 2018. They have signaled that they will ban it many times but the biggest question arises How?
There are more people on the internet in India than anywhere in the world, Is it practically possible to ban cryptocurrency which is also known as Internet currency. I do not tink so!

When Pakistan is trying to regulate and China is also how can you think this Indian government will ban crypto?

Right! This is where I think government is doing mistake. If they think that by just passing a law, they will be able to stop illicit activities which use cryptocurrencies in anonymous nature then they are wrong. Even after passing such law, those activities will continue. Only white-money transactions i.e. sale/purchase on legal and regulated exchanges will stop. This in turn only going to hurt government as it will make dent in government's revenue from taxes. Really foolish from government if they go on with the bill.

By the way,  you can't say China has regulated cryptocurrencies in positive sense. Crypto companies can't use banking services in China so the current Chinese situation is equivalent to what India had between June 8th 2018 and March 4th 2020.

[aysg76]

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

[blackened515]

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

It is obvious that by private currency they mean any crypto currency besides government issued digital currency. BTC also falls under this category but exception may be given to cryptos like ETH because their sole purpose is not to transfet value.
Ethereum blockchain is widely used by many fintech companies.

[pawanjain]

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.

[webtricks]

~~snipped~~              
source - webtricks, Google

Haha, I guess I wrote those words in one of the group yesterday. And thanks for not including what I wrote in bracket after 'Nirmala Behen Ji' else I would have been in big trouble. 

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.

I really hope that government is just planning to ban the usage of cryptocurrencies as legal tender (medium of exchange, mean of foreign remittance, etc). And this is also justified because government is unable to collect 5% TCS which it levies on foreign fund transfers. Trading in heavily regulated environment should be allowed. Let's see. 

However, I don't agree much with Zebpay here. Don't expect too technical definition of 'private cryptocurrencies'. I won't be amazed if Section 2 of the bill simply defines 'private cryptocurrencies' as 'the cryptocurrencies issued other than those issued by government'.

[avikz]

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?

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!

[Mistafreeze]

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?

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!

People may keep holding their coins secretly but once it is banned, all exchanges will be shut down and we will not be able to cash out our coins.
Also account associated with bitcoin trading in the past will come understand surveillance.

[blackened515]

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?

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!

People may keep holding their coins secretly but once it is banned, all exchanges will be shut down and we will not be able to cash out our coins.
Also account associated with bitcoin trading in the past will come understand surveillance.

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.

[pawanjain]

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.

And why do you think that ?
If the Government introduces a bill/law or any rule, it doesn't mean it is always right. There are times when the Government may implement a new law but eventually has to change it.
And even if the Government takes the decision of banning cryptocurrencies, I will still be holding on to my cryptocurrencies. It does not mean I am a "Criminal".
It only means I believe in the technology. I might not use it though, but I will definitely hold it until the Government changes its opinion about cryptocurrencies (at some point of time it has to)
It's just a matter of perspective.

[KryptoKings]

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.

And why do you think that ?
If the Government introduces a bill/law or any rule, it doesn't mean it is always right. There are times when the Government may implement a new law but eventually has to change it.
And even if the Government takes the decision of banning cryptocurrencies, I will still be holding on to my cryptocurrencies. It does not mean I am a "Criminal".
It only means I believe in the technology. I might not use it though, but I will definitely hold it until the Government changes its opinion about cryptocurrencies (at some point of time it has to)
It's just a matter of perspective.

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.

[blackened515]

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.

And why do you think that ?
If the Government introduces a bill/law or any rule, it doesn't mean it is always right. There are times when the Government may implement a new law but eventually has to change it.
And even if the Government takes the decision of banning cryptocurrencies, I will still be holding on to my cryptocurrencies. It does not mean I am a "Criminal".
It only means I believe in the technology. I might not use it though, but I will definitely hold it until the Government changes its opinion about cryptocurrencies (at some point of time it has to)
It's just a matter of perspective.

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.

Well said. We do not want to break laws though we do love btc and crypto and we do believe they can improve economy of country but if it is declared illegal by our government, we will follow the law.