India Crypto Update: Govt Department Seeks Crypto Ban Whilst Considering it Ponzi
Nevertheless, the Supreme Court of India is yet to discuss and finalize the aspect of crypto in India on July 23, 2019.
On early June 18, 2019, a crypto news portal from India has leaked out crucial news on Indian Government’s possible decision regarding cryptocurrency within the country. Accordingly, the Govt department wants to ban cryptocurrencies in India besides putting in a basket of Ponzi schemes.
Confirmed – Govt Seeking Crypto Ban in India
The news comes as confirmed piece after the response received for RTI filed by Mr.Naimish Sanghvi from Coin Crunch India, a crypto news portal from India. Per the report, Investor Education and Protection Fund (IEPF) authority addressed RTI application submitted during April and states that the meeting held on Jan 24, 2019, the IEPF authority with other bodies including DEA (Department of Economic Affairs), CBDT (Central Board of Direct Taxes, Government of India), CBIC (Central Board of Indirect Taxes and Customs), and MCA (Ministry Of Corporate Affairs) concluded discussion on implementing the ban on cryptocurrency – for sale, purchase, and issuance of all forms of cryptocurrencies.
This means that Govt might soon propose a ban on sale, purchase, and issuance and not necessarily holding a cryptocurrency. However, reports also confirmed that Govt is pulling crypto in a list of Ponzi schemes. RTI addressed 11 key questions concerning crypto ban, wherein the answer to RTI cleared out only questions by citing section 2 (f) of the RTI Act, 2005. The original copy of the RTI reads that;
A meeting on this subject was held under the Chairmanship of CEO, IEPF Authority on 24.01.2019 with all concerned i.e. Department of Economic Affairs, CBDT, CBIC, and MCA. It was unanimously decided in the meeting that the Department of Revenue and Department of Economic Affairs may immediately take steps to completely ban sale, purchase, and issuance of all forms and types of cryptocurrencies. In the meeting, it was discussed that it has features of Ponzi schemes.
But it’s Not Law Or Approved Bill Yet
While Govt stance on crypto seems restrictive, on the other hand, the crypto community is stubborn to influence Govt on the use-cases of cryptocurrency and blockchain in India – if positive regulations come forth. As such, Blockchained India, an independent blockchain community in India stepped out to gather collective voices of Indian blockchain & crypto enthusiasts.
Besides that, Varun Sethi who is famously known as Blockchain Lawyer has also begun a new signature campaign when the buzz of 10-year jail bill rolled out. Accordingly, the Signature campaign intends to collect votes from Indian crypto & blockchain enthusiasts to support crypto & form positive regulations around it.
Moreover, it is worth to note that the crypto ecosystem in India is still in a state of limbo. Today’s RTI response is merely the official confirmation and the possible decision by Indian Govt. Having said that, this is not the law or bill passed by Govt yet.
Nevertheless, the Supreme Court of India is yet to discuss and finalize the aspect of crypto in India on July 23, 2019. And the #IndiaWantsCrypto campaign by Nishchal Shetty, CEO of WazirX exchange still waiting to hear out from finance minister and prime minister. As such, it is 229th day for the campaign.
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