Cryptocurrency

India’s Jail Term for Crypto Usage – Facts and Myths

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India's Jail Term for Crypto Usage - Facts and Myths 7

Few days back, a report claimed that India is considering to put a law wherein there will be a jail term of one to 10 years for those who mine, hold or sell cryptocurrencies. Though, Crypto experts in India have remain in denial mode and even questioned the report by Bloomberg Quint.

With the huge buzz & miss-understanding around Crypt & India going on, here are few facts pertaining to Cryptocurrencies in India and ongoing case in apex court of India.

Fact 1

Cyrptocurrency is neither legal nor illegal in the India

Fact 2

RBI has asked banks to stop working with individuals and businesses that deal in crypto.

Fact 3

Last year, Indian government had constituted a panel led by the Finance Secretary Mr. Subhash Chandra Garg to draft regulations for cryptocurrencies.


Matter 1 – Supreme Court Hearing on July 23

“The Supreme Court of India has set a new date to hear the crypto case, i.e July 23 (Tuesday).

“Mondays and Fridays are ‘miscellaneous’ days of the supreme court and the present matter is considered to be of a ‘non-miscellaneous’ nature.” The last court order released confirms the new date, saying, “Upon hearing the counsel the court made the following order … List the matter on 23rd July, 2019,”

India's Jail Term for Crypto Usage - Facts and Myths 8

Source – Naimish Sanghvi @Twitter

Matter 2 – 10 years Jail for Crypto Traders, Holders, Miners

The draft of Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019 was first accessed by Bloomberg Quint (as claimed) and that draft reads;

Whoever directly or indirectly mines, generates, holds, sells, deals in, transfers, disposes of or issues cryptocurrency or any combination thereof with an intent to use it for any of the purposes mentioned in, or directly or indirectly uses cryptocurrency for any of the activities mentioned in, clauses (e), (g) and /or (h) of sub-section (1) of Section 8 shall be punishable with fines as may be prescribed by the Central Government in the First Schedule or with imprisonment which shall not be less than one year but which may extend up to ten years, or both.

Also, according to the draft Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019, written by Bloombergquint’s author Nikunj Ohri the government will also propose the introduction of an official ‘Digital Rupee’ in consultation with the central board of RBI.

If the drafted bill becomes the law, cryptocurrency holders will have 90 days to declare and dispose off cryptocurrencies “in accordance with the prescription of central government.”

Matter 3 – RBI Denies Report of ban on cryptocurrencies report earlier published by Economics Times

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 Source – Varun Sethi @Twitter

As per an RTI, filed by Varun Sethi, a lawyer specializing in blockchain, Reserve Bank of India has already denied any involvement and knowledge about the ban on cryptocurrencies. In that RTI’s response, the RBI said it had no knowledge of such a bill and it had not received the draft for perusal.

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Matter 4 – Crypto & Blockchain Community Stubborn to Bring Change Through National-Level Conference

At the centre of ongoing buzz around crypto & blockchain regulations in India, there’s a national-level conference soon to be happening in Bangalore. The latest report of 10 Year Jail Bill Report by Bloomberg Quint has led many crypto enthusiasts, traders, hodlers, miners and investors to know the depth of upcoming crypto & blockchain regulations by top leaders of Indian blockchain & crypto community.

Also, it’s worth to note, Akshay Aggarwal whose name often comes under leading crypto news platforms like Cointelegraph, Bitcoin.Com, Coindesk, and many other top crypto-news portals, has recently marked its presence at the Swiss-tour, led by Swissnex to study and explore blockchain-ecosystem of Switzerland. His latest coverage about Swiss- blockchain study tour on Cointelegraph can be found here –

As India Dapp Fest is just around the corner, Indian crypto & blockchain community is rushing to attend the conference to know crucial facts behind the scene. On top of all, this is the only event in India in 2019 that is launching blockchain-friendly regulation report that was prepared by bringing together the voice of India through nationwide road shows during the month of March & April.

India Dapp Fest – 11th June – 15th June
Hackathon – 11th June – 13th June
Conference – 14th June – 15th June

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Vardaan
Founding editor at IndianWeb2, he's been writing at IndianWeb2 since 2007. Apart from blogging he had a professional career of software developer, Ux developer and search engine marketer in past. His vision of IndianWeb2 has been laid down so as to showcase, encourage and propagate Indian startups, innovation and entrepreneurship ideas.

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