Blockchain Lawyer’s reaction to 10 yr JailTerm in proposed “Banning of cryptos Bill in India”


hey guys how you guys doing today well that my twitter has been abuzz especially in light of what has happened in the crypto space in the last 24 to 48 hours we all know that ID filed a right to information application with the Reserve Bank of India about a month ago we received a response on 4th of June 2019 and barring Reserve Bank of India claimed that they have not communicated with any other government Department or neither received not sent across any information regarding the draft crypto bill which talks about banning crypto assets here in India how would this video is pertaining to the other report that came just day after the response that we received from the Reserve Bank and it was by bloomberg Quint wherein it stated primarily three things instead of that the the portions of the bill state that and I have scribbled down some notes it mentioned about anyone who minds generates hold sells transfers dispose of issue and dealing in crypto currencies directly or indirectly can land up in jail for up to about ten years now I can see lots of people getting panicked because of that news and which is not which is not wrong I’ve been receiving lots of random emails regarding this matter most of you may be aware and there are some other experts also sharing their views on it so I’ll also share what my thoughts are other than this 10-year term it also mentions about a 300 percent penalty on the games that are made in in crypto sand it also mentions a 90 day time period to actually dispose of all the crypto holdings that you have in your portfolio suppose this bill of course there’s bound to be panic in the in the crypto market and as I stated that there are other experts in the space who have shared their comments I’ve also analyzed their comments and I totally agree with the comments that they have shared most of people are saying that well it is still uh still a proposal it is not an efficient bill and the journey from bill to an act might take a long time and it might change shape during that time period and some people are also calling it a clickbait where in the bloomberg quint actually was asking to pay to to find this article and access this article and of course this news then got copied to other news channels like money control and someone told me that it calls overcome and then imposter and other media platforms so the question is what are my thoughts about it why well i totally agree with what the other experts in this field are saying that it is still a bill and it might change shape till the time it becomes an act so I totally agree with that uh with that school of thought that should you panic should you do anything about it well ideally you cannot do much about it and you should not panic because it is still a bill not an act however this video is not just about whether this provision is a bill whether it is a clickbait whether it becomes an act or not I have a different you go into it let’s think of a theoretical option wherein whatever is mentioned this article actually becomes true what if whatever is mentioned like a 10-year jail time period and mining generating Holdings selling transferring all that stuff actually becomes prohibited it is not that these provisions are just out of the blue Prevention of Money Laundering Act mentions about a seven to ten year jail term so it seems to be copied from that provision a section 271 C of the Income Tax Act talks about a three hundred hundred percent to three hundred percent penalty for tax evasion so obviously three hundred percent it’s not something in this proposed bill is not something that is there for the very first time it she only exists in the existing law of India as well and the 90-day time period is equivalent to the 90 days that were primarily given when the ring-fencing notification in April 2018 came from the Reserve Bank where in the exchanges of India the crypto exchanges of India were given 90 day time period to see where all the relationships are with the banking channels so the question is if all these things are true what should you do what if in worst case scenario all these three provisions the 90-day time period the 300% tax penalty and the the 10-year jail term in case you mind hold secure of mind whole tray and all that stuff do those things in crypto so what should be done then I’m a full advocate of this principle that no law in India should be drafted in watertight compartments in isolation it should surely involve in a democratic process involvement and opinions of people who are getting affected by these things so in this case I believe the crypto asset owners traders should at least have an opportunity to voice their opinions I will just take up a minute or so to actually take you to another news that happened last weekend because of all the busts that was happening here in India perhaps most of you missed the news I’ve scribble down some notes it was in Japanese something very interesting has happen in Japan about a week ago this was May and so roughly about five seven days from from today on May 31st the Japanese House of representation has amended to existing two currency related laws they’re the two bills are the payment services Act and the financial instruments and Exchange Act what have they done in this amendment is that they have given away the definition of virtual currencies and typically define what up crypto assets so crypto assets for the very first time gets defined legally in Japan that’s one second they put in place a framework stating that every exchanger registered exchange in Japan has to have a custodian service suite the owners of exchange do not also hold the currency there has to be a custodian service third earlier they were they were mentioning things like problematic crypto as a zero price these are primarily previously coins like more rosy cash what this amendment has done is that it has now included privacy coins like mana room and Z cash in the definition of this act so now they are calling not problematic crypto assets but they are calling it anonymous coins so they even the privacy coins like Monro and z cash have got recognition and obviously there are other things like they have have again updated the definitions of i ciose and stos they also recognize derivatives why because they feel that derivative market is about 80% of the total crypto trade volumes so these are things that have happened in Japan and obviously just this bill gets so these amendments get updated from April 2020 in Japan why is it that I’m taking the example of Japan see it is very important in the Japanese law there is contribution by the community at the time of making the law and the government also takes into cognizance at the time of these amendments proposals and opinions of the people who are affected by such acts however in India we still have laws and regulations in very watertight compartments and being built in isolation if the news of Bloomberg Quint is true then it contradicts with the responses that we receive with Reserve Bank of India Reserve Bank of India states that we have not communicated with any other department including Department Economic Affairs even one response in our rt8 states that we cannot define digital of currencies which is mentioned the proposed bill it has directed that question of Department of Economic Affairs now the point is one option other than ignoring whatever Bloomberg quite and other reports are going by saying that okay it was just a clickbait if this is true one of the opportunities one of the options that you have is of course set up a offshore structure I wind up your things in India and then go abroad perhaps take up a permanent residency in some country or maybe get a new passport give up the citizenship of the residency in India that’s one option but is that option or is that plan here I don’t think so that should not ideally be planned here then what is planning well-planned a is how many of you are willing to put your bodies on the line to talk to the government plan is that while the government drafts and the legal procedure follows its traditional mechanism of becoming a build and then becoming an act can there be can there be proactive contributions by the community using beautiful legal literature that is available for Japan it is it is not very publicly available like to convert things from Japanese to English to understand it but it’s surely available in public domain how about this can we start a signature campaign get 20,000 signatures go to the company and say that see what this is what Japan is doing by 2020 they will have a mature not a preliminary but a mature cryptocurrencies or I should say crypto assets regulatory framework can India learn from it it is known that Japan does not have the problem of money laundering it still has the problem of money laundering but yet they are not allowing the technology to just go away because the risks of money laundering India use the beautiful legal literature that has been developed in Japan here in India it will not come from the lawyers let me disappoint some lawyers here can we collate and collaborate our efforts in focus and go to the government how many of you are willing to sign that signature campaign I’ll take it one step ahead how many of you are actually willing to physically write letters to the Department of Economic Affairs stating that this is what is happening in Japan perhaps I can translate that stuff in Japanese to English and share it on on my social media how many of you are willing to physically go to the Department of Economic Affairs Office and say that sir we are being affected by this thing I’m a technology geek I Muhammad a clear and try to build something on cryptos or on blockchain and I don’t think that an outright ban would be beneficial for our community can something on these lines be done obviously obviously the law will take its legal course but we’ve seen the Honorable Supreme Court judgement as well it’s been what more than one year with hardly with little progress there we understand that of course Supreme Court has many more important cases to handle but can a representation and a proactive representation from people who are legitimately wanting to be part of this community go proactively to the government approach the government and then involve their own thoughts and opinions in the draft that is being drafted as as the cryptocurrency bill do you think that that option is far more democratic in nature how many of you are willing to do that thing so what I can do is that I can start a campaign maybe in next 48 hours we can drop something on the lines of Japan maybe a simple thing only obviously we need to customize it to the Indian requirements but at least we have legal literature available of a country which is more developed than us and and laws which are adopted by the by the House of Representatives there if something like this excites you if something like this you feel is important and relevant in addition to whatever is happening or being done by the lawyers in the wonderful Supreme Court non-winged case then do write to me do like share subscribe this video and in case you’re interested in being part of that change dot o-r-g or some other form that we might use for the signature campaign approach the government and then see how things work all I can say is that well the time to act is right here and right now it’s very easy to sit back and sit and just ignore the news and say that okay this is just a clickbait it may be Bloomberg quint learn something out of it but what if this is true how many of you are willing to take that effort today instead of just regretting it when it becomes the law we hope that it does not in the same shape and manner does not become the act but what if it becomes then instead of regretting it later let’s take action right now if you are interested in being perfect do Buzz me on Twitter do write some comments here on YouTube and we’ll see what we can do thank you so much for watching

36 thoughts on “Blockchain Lawyer’s reaction to 10 yr JailTerm in proposed “Banning of cryptos Bill in India””

  1. Count me in …. I am willing to sign the petition, also try to put whatever effort it require to put in I will try to give my 100%. thanks for igniting the fire.

  2. I am ready to sign and even forwarding this video to wazirx. As we as an individual we can sign the petition but to represent us some market people should take initiative as an exchange they keep our consents and details with them and from exchange its legitimate income will come and go so no money laundering issue will arise and secondly a serious action should be taken for fud news mongering.
    Thirdly if a 90 day span is given to liquidate then to whom we will sell coz no outsider will pay in INR and no exchange is there to do trade and in P2P only indians can do so it is not possible to liquidate az seller will be there but no Indian buyer. Well ? 4 ur idea and initiative.

  3. me ready to sign.just to add varun ndia is meeting other nations in g20 summit and as per the news crypto taxation is going to be dicussed and japan has prepared guidelines which i suppose will be shared with other nations. its on june 28 and june 29.

  4. Will it work… They will just say this is india not japan… The modi govt echo chamber is very strong… They will not listen… Remember they didn't even listen to RBI's warning during demonetization.

  5. https://www.change.org/p/rbi-make-india-at-the-forefront-of-blockchain-applications-revolution this is a signature campaign that was started during RBI ban can be modified to represent the current one

  6. Sure, Start the campaign and i am ready to act to it whether it is signing it or writting a letter to ministry of economic affairs.

  7. Yes there has to be a democratic way of enacting a law for cryptocurrencies in India by involving people who would like to deal in cryptocurrencies so that it is ultimately benedicial to our country and the people who would like to deal in these cryptocurrencies. Definitely a discussion with the Government is called for and I am willing to sign any prtition.

  8. I will be writing a letter to Economic affairs dept. requesting them to take the progressive and democratic way of handling this. Will actively share and participate in whatever campaign you start. Let's do this

  9. check my crypto analytics tool Blue Swan Grading for deep analysis. Only for institutional investors. http://grading.blue-swan.io

  10. Should'nt Government first define & recognise virtual items such as cryptocurrency / facebook coin, game items before making it a basis of any laws such as Prevention of money laundering acts? There has to be a real crime involving real assets to invoke punishment .If government passes such laws then it is also forced to accept it as currency or a real asset. and extend the same logic to several digital/virtual assets now and in the future.

  11. yes am willing to participate in the signature campaign as well as share my opinion on the crypto assets regulatory framework

  12. Let's get the ball rolling. Start the signature campaign. Need to let the RBI know that they are totally clueless about cryptos. And as with all the government departments, there is no vision and we are years behind other countries like Japan, South Korea etc.

  13. This is the problem once a govt comes they forget democracy. And want people to come to them not that they should approach the people and know their opinions. This is our great India …….

  14. And please draft a campaign again we will make sure it reaches to them and if they still dont hear lol its crypto

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