Topic: Crypto Ban Draft Bill Excluded From Upcoming Parliament Session (Read 219 times)

No one is denying that. MPC is indeed controlled and constituted by government. But you know when MPC is created? It is created when government requires expert advice on some complicated matters. Hence, what government does, it creates a committee having members from different fields like one from government itself, one from RBI, one from finance ministry, others from various other financial departments. MPC then discuss the matter in series of meetings and comes to final proposal which is then presented to government. Government then have complete autonomy to either accept the proposal or reject it.

But you know there is one difference between the decision taken by committee and decision taken by government. Committee only takes into consideration the technical purview and decision is explicitly taken on that basis. But when it comes to the decision of government, government takes into consideration social reaction, public retaliation along with technical aspects. So in short we can say, government will never hurry and implement committee's draft.


I don't want to go in details of politics within RBI or its tension with government, there is much more into case then what you and me know. However, I would like to reply to the text I bolden in the quote text above. So first thing, RBI didn't ban anything. It just issued guideline to commercial banks to not provide banking services to businesses involved into crypto business. This guideline indeed comes into the definition of 'controlling the banking sector'. Shutting down of businesses like Zebpay is just the consequences of this decision. If Zebpay wants it could have stayed and evolved itself into P2P, something like WazirX or Giottus. It made exponential profits in FY 2017-18 and could have worked in losses for a year until its P2P network starting gaining momentum. But what Zebpay did, it left India, moved to Malta and forgets Indian market completely. When Zebpay has no sentiments for Indian market and adoption of Bitcoin in India then why we are fighting for the closure of such businesses? Did you see any case filed by Zebpay against RBI decision? No, it was IAMAI which took initiative.

What's the point of crypto trading being legal when banks are taking action against the traders on the slightest hint of trading bitcoins? It simply implies that you may hold bitcoins but can never convert it to INR freely. Glad atleast they will not even address the ban bill this year.

Another temporary breather just got extended! Till the time, the case is extended, we continue to get such kind of breathing spaces! RBI is expected to act arbitrarily, as well as the religious government of India! I hope someone clubs cryptocurrency with Cow or religious sentiments somehow! Then only we can expect to have it legal here!

Case update:

---

---

The RBI executed the order to shut the entire crypto market and it is a liability as it caused business losses and that is not bestow upon the RBI and if the actions lead to create financial loss then the government must intervene, technically RBI did not shut down the crypto market but if that leads to destroying and causing liability then someone should be responsible to give a concrete answer for the investors as it was a dictatorship move and none of these companies function against the rule of the land and India is a democratic country.

They didn't ban anything either, rbi just restricted banks from dealing with crypto individuals, exchanges couldn't operate without bank support hence many had to shut down.

Shutting down of businesses is indirect effect of banking ban.

Hope you are aware of the Monetary Policy Committee and it is control by the government and now a days nothing is transparent like they used to be in the past and RBI does not take control of everything now and hence there is no conflict of interest .when the current government came into power you know how many governors were changed because they do not listen to the central government, first it was Raghuram Rajan then came Urjit Patel and now we have Shaktikant Das, any idea why this much change in a short period of time and you think that everything is normal and regarding the bitcoin ban, the RBI does not have the power to ban anything and what they control is the banking sector and not to shut down businesses.

No, that would be highly chaotic if government does something like that. This would lead to clear conflict of interest. It's on the directions of RBI that businesses like Zebpay halted their operations. If government comes up with temporary law to overrule the decision of RBI then that may be assumed as dictatorial decision by everyone. RBI doesn't come under government and has its own statutory backing independent of government just like Supreme Court, SEBI, ICAI and other statutory bodies.

^^ This is the main reason why Supreme Court is delaying the verdict too. It wanna make sure that the power of RBI is not violated by the decision of court and what RBI issued was under its power or not. If it is proved that RBI has clear authority to issue ban on crypto-related business then even courts are helpless, let alone government.

So what we should hope for as of now is a detailed and well-thought bill regulating cryptocurrencies rather than banning these and covering all aspects of ambiguity. However, on the personal note I don't want crypto to be regulated. Even if government spares trading, buying/selling and holding of cryptocurrencies in bill, it by no means will allow gambling or activities like mixing which is possible at present. So it's better for us to remain unregulated and pay taxes on our crypto earnings as per existing laws.

They are already dictating what you eat and how you show respect and patriotism and the old hegemony is clearly visible in almost everything and that is happening in the bitcoin market as they could hold businesses from functioning and they do not care about the loss these companies are baring and the loss of jobs and they are not able to come up with some temporary law to protect these business shows the state of our internal affairs.

I'd assume it's final for this session/this year and next session will be in February 2020.

Well then, that would be like striking a hammer on their own foot (the judicial system I'm talking about). Once migrated, it wouldn't be that easier for these businesses to come back and I believe these SC and Gov officials really need to take crypto seriously and talk about it rather than throwing it in the hands of some 5-10 or maybe 20 members' panel, I mean who the hell are these panel guys and how can they decide the destiny of both Bitcoins and millions of Indians using it? Straight ban would be shit IMHO and if it's all about democracy here, ask them to simply take out a poll and ask for votes of people and why they need/don't need BTC to be used and accepted here. Straight banhammer would be like they are the King and forcing their decision on us, why don't they think that this will only increase dark trades and they won't be able to trace them if people know more about security measures they can take to remain private?

Is it even possible to come up with a bill to ban the entire market when the case is open in the supreme court, do not expect the supreme court to come up with a verdict anytime soon, the judicial system in India like to test everyone's patience and when all the companies that got affected by the decision plans to shut their business and move on to other countries you might see a verdict.
 

Was just about to post this news. Thanks for posting it on time.

Is this the final list for 2019 or there can be any other list? Also, when is the next session after winter session? Any idea?

I guess, we will get another date on that day. Lots of important hearing are going on now. Crypto will not get that much importance.

This link shows matters to be heard in next Parliament session  which is commencing on November 18: http://loksabhadocs.nic.in/bull2mk/2019/14.11.2019.pdf

Crypto ban draft bill has been excluded from it.

I feared supreme court would keep delaying the case and ban  bill would be passed directly. Thankfully, it won't be the case (at least for a while).

I can't wait to see how this 'thriller movie' folds out.

ps: next sc hearing is on November 19.