indian users will be required to keep their coins in exchange.

[IIrik11]

read this: https://cointelegraph.com/news/cabinet-note-suggests-india-will-regulate-rather-than-ban-crypto

investors will be given a specific time frame to declare their crypto holdings and transfer them to exchanges regulated by the SEBI, which suggests that private wallets may be banned.

Not everyone was as pleased with the details, with u/No-Incident-8718 writing, “Here’s the catch. No use of hard wallets, only exchange wallets. Also, only using Indian exchanges.”

if this becomes law then this is just flat out means that you will no longer be able to hold bitcoin or any other crypto for that matter in your own wallets.

sort of against the notion: not your keys - not your coins.

but if one doesn't follow this law then: https://cryptoslate.com/india-may-disallow-indians-from-trading-crypto-on-foreign-exchanges/

Among the various litigations proposed are penalizing the violation of clauses to be met with strict punishment—including imprisonment for one and a half years—followed by a heavy penalty of upto Rs.5 crores ($667,500).

 

[Frengki_cisco]

I don't believe in laws in my country you have rupees you are free you don't have rupees you perish Indian money brains i don't care about laws and laws all bullshit.

If you live in india you don't believe in those ridiculous laws, all is well, caste speaks.

[teosanru]

Technically it's impossible to ban private key wallets, all you can do as a government is ban Crypto exchanges and stop people from adding fiat into cryptos but it's certainly impossible to track crypto to crypto transactions especially the ones that happen in private key wallets, even finding whether a transaction is relating to your country or not is a difficult task let alone finding the person involved in that transction. The Law can easily be made but it's enforcement would be impossible.

[pakhitheboss]

Why we will hold our assets in a private exchange when we do not want to sell them at all? I personally do not want to sell my Bitcoin and all of them are being held in my personal crypto wallet. How will then the government find out? If for any reason I want to sell my Bitcoin then I would use a private P2P service then how will the government track it? The only thing they can do is charge me a tax for the money that got credited into my bank account.

They can only regulate INR and Indian crypto exchanges and not cryptocurrencies in general.

[IIrik11]

even if u sell in personal, the money coming in your account can be traced.

and if they find out, you'll end up paying fine up to 5 cr or end up in jail or maybe both.

do u think every indian will take this risk?

i think not.

[teosanru]

even if u sell in personal, the money coming in your account can be traced.

and if they find out, you'll end up paying fine up to 5 cr or end up in jail or maybe both.

do u think every indian will take this risk?

i think not.

How are you saying fine up to 5 crore? I have not seen any single official source which has confirmed that there will be 5 crores fine or imprisonment, what I know so far the bill has not even been presented in the parliament, so It's too early to speculate anything of this sort. Some news sources are even saying that there will only be regulation by SEBI for money laundering activities rest everything can stay legal,  while some are saying everything would be banned. So at this point best thing we as a member of the crypto community can do is stop spreading and believing in any fake news. Let the official sources confirm what is actually going to happen.

[Bitcoin Smith]

even if u sell in personal, the money coming in your account can be traced.

and if they find out, you'll end up paying fine up to 5 cr or end up in jail or maybe both.

do u think every indian will take this risk?

i think not.

Let me tell you one thing even if the government traces the money from exchanges going into a wallet they literally can't prove who is the owner of the wallet because its just a virtual thing and you no need any ID to create an actual Bitcoin wallet and when we are going to give the ruling power to someone who is actually have some knowledge not who support the religion and Play the dirty politics.

[pakhitheboss]

even if u sell in personal, the money coming in your account can be traced.

and if they find out, you'll end up paying fine up to 5 cr or end up in jail or maybe both.

do u think every indian will take this risk?

i think not.

Let me tell you one thing even if the government traces the money from exchanges going into a wallet they literally can't prove who is the owner of the wallet because its just a virtual thing and you no need any ID to create an actual Bitcoin wallet and when we are going to give the ruling power to someone who is actually have some knowledge not who support the religion and Play the dirty politics.

All Indian exchanges have made KYC compulsory. So if you make any purchase through an Indian exchange then they will know who is that user. If sell on an Indian exchange they will again know. Only when you use your personal wallet then they cannot track or trace the origin of the transaction.

[Frengki_cisco]

even if u sell in personal, the money coming in your account can be traced.

and if they find out, you'll end up paying fine up to 5 cr or end up in jail or maybe both.

do u think every indian will take this risk?

i think not.

I've violated some of the rules implemented by the Indian government, they only asked for 2 Crore, for coffee, I never knew there was such a fine rule, I recently found out, yesterday they didn't say anything like that.

I agree with @pakhitheboss, after I broke that rule, I currently do more personal wallet transactions, it's safer for me, than I have to spend a few Crore for the thick mustache.

[pawanjain]

Just chill guys. I would say we should all take this very lightly because government decisions take long time to be finalized.
There will come many rumors like the one mentioned in OP and will create a buzz in the community.
If anything then we should just patiently wait for the "official" announcement from the government and wait for their instructions to be followed.
I personally don't think that the government will ban cryptocurrencies or hard wallets because it just doesn't make any sense in doing so.
The government is better off at regulating cryptocurrencies and allowing it to be used as tradable asset and get tax from the capital gains on trading.

[teosanru]

even if u sell in personal, the money coming in your account can be traced.

and if they find out, you'll end up paying fine up to 5 cr or end up in jail or maybe both.

do u think every indian will take this risk?

i think not.

Let me tell you one thing even if the government traces the money from exchanges going into a wallet they literally can't prove who is the owner of the wallet because its just a virtual thing and you no need any ID to create an actual Bitcoin wallet and when we are going to give the ruling power to someone who is actually have some knowledge not who support the religion and Play the dirty politics.

But the thing is they can still identify the source which means they can nab you and ask you where did you send the money to. Whenever the authorities can find atleast one person whom they can ask questions, things become very easy for them. So you need to find just one person in the whole chain. Talking about the people ruling us, trust me this scenario is not going to change for many many years to come. It will remain the same as it is now. People always prefer choosing leaders which are of their category and as long as these leaders know what triggers the folks they will remain in power. 

[pakhitheboss]

Just chill guys. I would say we should all take this very lightly because government decisions take long time to be finalized.
There will come many rumors like the one mentioned in OP and will create a buzz in the community.
If anything then we should just patiently wait for the "official" announcement from the government and wait for their instructions to be followed.
I personally don't think that the government will ban cryptocurrencies or hard wallets because it just doesn't make any sense in doing so.
The government is better off at regulating cryptocurrencies and allowing it to be used as tradable asset and get tax from the capital gains on trading.

Absolutely correct. If a bill is passed from both the houses does not mean that it will become a law straight away. It takes time to become a law. Also, the government would give time to the community to make things alright. I also feel that this ban on private wallet won't happen but if it does then we do have the option to challenge it.

[IIrik11]

they won't find out as long as you transfer bitcoin from one wallet to another.

but as soon as you do p2p trade and a bank account gets involved, it leaves the door open.

if the trader you're dealing with gets caught, they will trace all the transactions sent/received from their account.

so, like i said, if this rule becomes law, holding/buying/selling bitcoin will only be done through sebi recognized exchanges.

u can keep trading p2p but u risk getting caught sooner or later.

[pawanjain]

they won't find out as long as you transfer bitcoin from one wallet to another.

but as soon as you do p2p trade and a bank account gets involved, it leaves the door open.

if the trader you're dealing with gets caught, they will trace all the transactions sent/received from their account.

so, like i said, if this rule becomes law, holding/buying/selling bitcoin will only be done through sebi recognized exchanges.

u can keep trading p2p but u risk getting caught sooner or later.

P2P trading doesn't only involve bank accounts but there is also hard cash involved. A P2P trader can opt for a bitcoin for cash deal and nobody will ever find out about it.
Also, P2P trading is not well established yet. If it becomes full fledged then I think there will be people who will operate a network of P2P traders.
So if there are so many people actively doing P2P trading then it will become difficult for banks to find out who is behind bitcoin transactions.

[pakhitheboss]

they won't find out as long as you transfer bitcoin from one wallet to another.

but as soon as you do p2p trade and a bank account gets involved, it leaves the door open.

if the trader you're dealing with gets caught, they will trace all the transactions sent/received from their account.

so, like i said, if this rule becomes law, holding/buying/selling bitcoin will only be done through sebi recognized exchanges.

u can keep trading p2p but u risk getting caught sooner or later.

P2P trading doesn't only involve bank accounts but there is also hard cash involved. A P2P trader can opt for a bitcoin for cash deal and nobody will ever find out about it.
Also, P2P trading is not well established yet. If it becomes full fledged then I think there will be people who will operate a network of P2P traders.
So if there are so many people actively doing P2P trading then it will become difficult for banks to find out who is behind bitcoin transactions.

Eventually, this P2P dealing will become similar to Hawala or Hundi transactions and I am sure the government of India will not try to encourage such things. I am sure the government are aware of such loopholes and will try to safeguard itself from such activities as it can become a huge tax loss for the government.

[libert19]

'suggets', 'may' - these words do not bring confidence, it's only law when it is passed. And if this passes, it would be height of stupidity.

[avikz]

I am seeing misleading and confusing information all over the internet. Various media houses are posting garbages to gain more pageviews and creating FUD.

One example: https://m.thewire.in/article/government/indias-proposed-crypto-bill-banning-payments-could-mean-jail-for-violations/amp

This is something new and highly contradictory to all news doing rounds in the market.

So I would say, don't believe these media houses just as yet.

[mulexjosh]

Seriously 50crores fine and jail term, is this the largest democratic country in the world? Where crypto traders is punish like the highest criminal in the country, but black money and the real hardcore criminals are roaming freely in the country? Overpopulated and scarcity of job, we indian youth are heading to darkness. Chinese communist govt's law is way better than this largest democratic country's law.

[JSRAW]

I am seeing misleading and confusing information all over the internet. Various media houses are posting garbages to gain more pageviews and creating FUD.

One example: https://m.thewire.in/article/government/indias-proposed-crypto-bill-banning-payments-could-mean-jail-for-violations/amp

This is something new and highly contradictory to all news doing rounds in the market.

So I would say, don't believe these media houses just as yet.

Does that surprise you? Its happening everywhere when it comes to crypto and tech industry. Be it media house or independent journalists, everyone spilling shit about almost everything and on many occasion they don't even bother to quote someone correctly. Sometime it feels like some kind of extortion tactics.

[Rickirs]

I don't understand , first they almost banned trading / exchanges in India then they allowed exchanges without any framework. Horde of people have already invested through those exchanges.

From news so far, it looks, they want to regulate it like Fiat currency ie. you can't do anything with crypto without informing Govt. else face prison term. So wan't to BAN crypto but don't want to BAN (atleast it should appears to not banned) .

The Indian government has reportedly proposed banning the use of cryptocurrency for payments and setting a deadline for investors to declare their crypto holdings. Mining is also going to be illegal.

What, so now India is becoming China on this as its impossible for India to be China in other fields (like development and power). Next thing will be banning internet as then only it is possible to ban crypto in Real.