Not every country in the world has been particularly friendly towards cryptocurrency and India is one of such countries as they instituted several laws that have gone on to stifle the crypto community. One of the biggest examples is a law that was put in place to prevent crypto-related businesses from accessing banking services and as such, many companies folded up altogether or moved their operations abroad. Needless to say, India’s attitude towards crypto has constituted a hindrance on several occasions.
According to an October 3, 2019 report, these laws have proved to be challenging once again as the police of Pune in India have requested that the court grant permission to move proceeds from cryptocurrency that was seized from a crypto ponzi scheme last year.
Lost and Found
According to the reports, the police had hired a company called Disciidium to convert the cryptocurrency, which is worth $1.2 million that was retrieved from the crypto Ponzi scheme but the company was unable to move the fiat currency due to the existing laws which state that crypto-related transactions are not to be facilitated by banks.
The funds in question are still in the firm’s bank account because the account frozen by the reserve bank of India and due to this, the Central Bank of India cannot move the funds to the state bank of India’s treasury fund in Pune according to cyber police’s senior inspector Jairam Paygude.
The company has gone on to challenge this order as it is, their account is frozen and the banks are unable to process any transactions relating to virtual currency’s which is why the money was frozen. But they state that they are simply trying to do their jobs and transfer the value of the funds to the authorities but are unable to do so due to this restriction and this shows yet another layer of complexity as to how these laws hinder various activities.
This adds to to the growing criticism of Indian crypto laws, including a proposed 10-year jail term for crypto-related business operations.
“As a startup from India, we always wanted to serve from India, but this recent complication has made it difficult for domestic crypto exchanges to operate their businesses in India. So, we are now an Estonia-based company, and any Indian law to criminalize crypto will not impact us,” said Rahul Jain of the law.