Home News Bitcoin Indian Crypto Lawyers Explain Their Take on the Alleged Bill Banning Crypto

Indian Crypto Lawyers Explain Their Take on the Alleged Bill Banning Crypto

July 16, 2019 15:17
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The draft of the alleged bill that banned cryptocurrencies has elicited a spectrum of reactions in the Indian community. Varun Sethi, the lawyer who uploaded the draft of the alleged bill shared his reaction on the same today.

He stated that, the source of the document was unknown so it was hard to verify its authenticity. He said, “Even if the document doing the rounds, is penned by the government, it is still a draft of the proposed bill. Chances are that, it might not even go through.”

Calling out the definition of cryptocurrencies stated in the document saying it was inane, Sethi said that if the Indian government follows the wording to the letter, it will mean a huge repercussion. He said, “We did not expect them to say cryptocurrencies are legal tender, but atleast they could have added the definition for crypto-assets, which is not there.”

He brought attention to the ‘most controversial part‘ of the alleged bill- Section 8, which said that, “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.”

Apart from Varun Sethi, the lawyers at Crypto Kanoon also shared their take on the alleged bill. Kashif Raza, one of the co-founders of Crypto Kanoon stated that, it is difficult to verify the authenticity of the document, given that it has not signed by any government official. They further opined that it has probably been written by an expert.

Mohammad Danish, who is the legal advisory at Crypto Kanoon said, “There are two objectives to the document. 1) To ban the use of cryptocurrency and 2) To introduce an official digital currency.”

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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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