Home News Bitcoin Draft Allegedly Banning Use of Cryptocurrencies is Out

Draft Allegedly Banning Use of Cryptocurrencies is Out

July 15, 2019 12:27
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Looks like there is some bad news for the Indian cryptocurrency community again. The draft that allegedly bans the use of cryptocurrency is out in public domain, shared by blockchain lawyer, Varun Sethi.

A portion of the draft under Part II reads, “No person shall mine, generate, hold, sell, deal in, issue, transfer, dispose of or use cryptocurrency in the territory of India. Nothing in this Act shall apply to any person using technology or processes underlying any cryptocurrency for the purpose of experiment or research, including imparting of instructions to pupils provided that no cryptocurrency shall be used for making or receiving payment in such activity. Nothing in this Act shall apply to the use of Distributed Ledger Technology for creating a network for delivery of any financial or other services or for creating value without involving any use of cryptocurrency for making or receiving payments.”

To say, the draft is disappointing is an understatement. Given the amount of time, the government has spent when it said it was “studying the technology” and “understanding cryptocurrencies”, and to come up with these regulations, is anti-climatic, to say the least.

We spoke to Nischal Shetty, the founder of WazirX about this and he said, “If this is a real draft then it’s a very regressive approach to a new technology. I’m certain our law makers will question and amend it such that the ban applies on money laundering and not on entrepreneurship or public participation.”

In May we had reported that an RTI filed by the folks at Coin Crunch India asking whether a complete ban is being planned on cryptocurrencies or not had been rejected by the Department of Economic Affairs (DEA). The reason provided for rejection is that the deliberations are now over and the information is to be made public soon.

At the time the response to the RTI had said, “Notwithstanding anything contained in this Act, there shall be no obligation to give any citizen, cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers: Provided that the decisions of Council of Ministers, the reasons thereof, and the material on the basis of which the decisions were taken shall be made public after the decision has been taken, and the matter is complete, or over: Provided further that those matters which come under the exemptions specified in this section shall not be disclosed.”

However, we can take heart that it is only a draft and not the final copy.

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A blockchain enthusiast, a wannabe-crypto investor and an all-around enthusiast! Loves travelling, especially to ASI-protected areas, believes in giving her best shot at everything she does! Definitely an introvert.

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