Bitcoin May Face 100% Ban In India; Unocoin Founder’s Arrest Has Rattled The Industry

This is still not sure what exactly will be banned, if such a law is passed.

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Bitcoins may face complete ban in India
Bitcoins may face complete ban in India

Govt officials responsible for debating and formulating regulations related with cryptocurrencies have suggested 100% ban on bitcoins and other cryptocurrencies.

This was revealed after reports of a high-level meeting between Govt. officials came out.

Meanwhile entire cryptocurrency industry in India is rattled and scared over Unocoin founder’s arrest in Bengaluru.

Which way is the nascent, yet promising (and somewhat ‘not legal’) crypto industry is headed to, in World’s largest democracy?

Govt. Officials: We Want Complete Ban On Cryptocurrencies

During the 19th meeting of the Financial Stability and Development Council (FSDC), which was headed by Finance Minister Arun Jaitley, the issue of regulating and controlling cryptocurrencies came up.

As per reports by PTI, the officials informed the Minister about the observations of High-level Committee chaired by the Secretary (Economic Affairs) regarding the issue. Subhash Chandra Garg, secretary in the department of economic affairs, is heading the committee on this issue.

The Govt officials suggested to “devise an appropriate legal framework to ban the use of private cryptocurrencies in India and encouraging the use of Distributed Ledger Technology”.

This has been ‘suggested’ based on the promises made during the Union Budget vis-a-vis cryptocurrencies. While announcing Union Budget 2018 this February, Minister Arun Jaitley had declared that cryptocurrencies will be banned in India.

In case the Govt. listens to the suggestions, then very soon, an ordinance can be passed, and all forms of cryptocurrencies can be banned in India.

Now, the question is, if a ban takes in place, then what exactly will be banned? Buying, selling or simply possessing cryptocurrencies?

We are still awaiting the final decision on this matter.

Unocoin Founder’s Arrest Has Shaken The Industry

After the founders of Unocoin, one of the first bitcoin wallets in India, were arrested, the whole industry is shaken, and rattled.

Unocoin had launched India’s first crypto ATM, which was technically a kiosk where users can withdraw and deposit cash. The actual transaction related to the cryptocurrency could have happened only at their app or website.

But Bengaluru police thought otherwise, and the founders were arrested as they didn’t have any ‘permission’ to operate such an ‘ATM’. Both the founders: Harish BV. and  Sathvik Vishwanath were arrested and their laptops seized.

Bengaluru police cyber crime department said, “The ATM kiosk installed by Unocoin at Kemp Fort Mall has not taken any permission from the state government and is dealing in cryptocurrency outside the remit of the law,”

Now, the thing which is concerning: The duo founders were booked for forgery and cheating, as if they were criminals.

One of the head of cryptocurrency exchange said, “I am scared, honestly. What if they arrest me next for something? I don’t want to go to the jail!”

Another head said, “For a couple of days the mood in the industry was, “Screw it, what is the point of anything if cops are going to randomly come and shut us down one fine day?”

We will keep you updated, as we receive more updates.

Related:

Indian Crypto Exchanges On High Alert; Zebpay Asks Users To Withdraw All Money ASAP!

Big Blow To The Blockchain Movement: Facebook Bans All Cryptocurrency Ads!

Bitcoin Achieves New High – Govt. Plans Closure Of Cryptocurrency Dealers In India

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