So on June 07, 2019, Bloombergquint media published a click-bait article by hiding many secretive facts behind paywall about upcoming crypto-ecosystem in India. While many perceive it just a piece of unbiased news, on the other side, the crypto community is widely shouting at the Govt of India and the possible effect it brings.
Clait-Bait Article Or Real Report?
Nikunj Ohri, author of Bloombergquint media published an article entitling “Exclusive: India Proposes 10-Year Jail for cryptocurrency Use, May Introduce Its Own Digital Currency”, cites the draft report that supposedly entitled ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019”. Although the truth behind this report is still unclear because what said to be the draft is still not officially shared by Govt officials – also it is not been published yet. The report mentioned that committee sent out a draft report to the Govt of India that proposes 10 years jail for those dealing with cryptocurrency mining, trading, holding and so on – also, it added that India will launch Digital Rupee, a possible alternative to cryptocurrency for Indians.
So as far as Bloombergquint’s report is concerned, many analysts/leaders of crypto industry discussed possible scenarios that might be happening in India. Although Bloombergquint is quite a reliable source for crypto news so far. Economic times had published a similar report on cryptocurrency usage within the country which had not confirmed by Govt of India until now.
Moreover, as a response to recent Right to information ( RTI ) filing by Varun Sethi, India-based blockchain lawyer on ‘proposed ban on Cryptocurrency’, Reserve Bank of India (RBI) says it has no knowledge about such report. It openly denies the report that once mentioned by Economic Times as ‘Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ draft,
What do crypto leaders think about jail report?
In case if we believe such reports, here are the opinions of crypto leaders.
According to Barry Silbert, the Founder & CEO of Digital Currency Group, India’s 10 year Crypto Jail report will in turn increase bitcoin awareness and interest in the country. He says;
India ain’t messing around. This will, of course, have the opposite of the desired effect on bitcoin awareness and interest in the country https://t.co/S7OehKgNS1
— Barry Silbert (@barrysilbert) June 7, 2019
Another leader, Anthony Pompliano, Co-founder & Partner at Morgan Creek Digital followed the similar tone and adds his doubt of bill to get past. With that, he points if it does, the scenario will be in turn drive adoption.
India is proposing a 10-year jail sentence for those who mine, hold, or transact with cryptocurrencies.
I highly doubt this will get passed, but if it does, it will have the opposite effect and actually drive adoption.
People don’t like being told what to do with their wealth.
— Pomp 🌪 (@APompliano) June 7, 2019
While many Indians doubt Bloombergquint report, Bloomberg author Nikunj Ohri shared the screenshot of the draft report which 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.
We’ll only know for real when section 8 shares. Until then I’m going to assume that section 8 talks about terrorism and money laundering and that these jail terms are for those activities. I highly doubt our PM @narendramodi and FM @nsitharaman will restrict the youth
This jail report didn’t go without being seen as India is the second largest country in terms of population and if it passes positive regulations, it would possibly be the best opportunity to bring India at the forefront of the emerging crypto industry. In fact, Ran NeuNer, CNBC crypto trader also shared his view, shouting this system as ‘what a bunch of idiots’.
This is so f@cking stupid. One of the biggest industries that could receive the Indian economy is tech and specifically blockchain. What a bunch of idiots!https://t.co/LMrVajqZ1i
— Ran NeuNer (@cryptomanran) June 7, 2019
In addition, CZ, CEO of one of the Binance Crypto Exchange shared a quite unique view and says that the bill will push privacy coin adoption forward.
That Bill in India will really push privacy coin adoption forward.
— CZ Binance (@cz_binance) June 7, 2019
Hopes Remain on July 23
So far, many reports have come and gone and as such, this report is just a draft and has not been passed by Indian Govt yet. however, it is quite surprising to see how Bloombergquint received access to such draft report while in reality, such draft will have to be the first get passed by Govt to have complete access. Nevertheless, reported by news.bitcoin.com earlier, in the last week of next month, the Supreme Court of India will finalize the aspect of crypto & ecosystem in India. On July 23, 2019, many misunderstanding revolves around cryptocurrency might be cleared out.
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.