- A recent article by BloombergQuint claimed crypto HODLers could be jailed for 10 years
- The article sparked a massive FUD in the Indian crypto ecosystem
- An official RTI filed with the concerned government bodies reveals they had no such information pertaining to cryptocurrencies
According to a report by local media outlet Crypto News India, published June 14, 2019, a Right to Information (RTI) filed with the regulators mentioned in the recent BloombergQuint article has revealed that no there’s no such official development that suggests a ten-year jail term for holding cryptocurrencies in India.
Dismantling the FUD
Cryptocurrency enthusiasts the world over would remember a recent article from BloombergQuint which stated that crypto traders and investors and holders in India could face as much as ten years in jail for selling, buying, trading, and holding cryptocurrencies for certain specific purposes. While the article didn’t clear the air about the exact reasons under which an individual could face a jail term, it did, however, manage to create enough FUD in the cryptocurrency ecosystem.
Despite the continual rise in the price of bitcoin (BTC), the value of the premier cryptocurrency in Indian exchanges was at least 15-20 percent lower than the global figure due to the latest FUD.
In the supposed draft bill shared by the publication, it was claimed that the Indian government might create a separate board to keep a check on cryptocurrency transactions and crypto-related cases and that the board would comprise of members from the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA). The article read in part:
“It seeks to have an appropriate regulator under the Act that will have representatives from Insurance Regulatory and Development Authority of India, Pension Fund Regulatory and Development Authority, RBI, SEBI and any other regulator notified by the Central Government.”
Unconvinced with the atrocious claims made in the article, Crypto News India filed an RTI request with the IRDAI asking them if they’d been part of the committee drafting regulations on cryptocurrencies. Now, the regulatory body has replied to the RTI saying “No information available.”
The response from the government regulator casts further doubts over the already controversial article by BloombergQuint. Perhaps it would be wisest to wait until July when the country’s apex judicial body, the Supreme Court, would hopefully make a decision on the legal status of cryptocurrencies. Until then, keep on HODLing and BUIDLing.