Thread by @medianama

"How #cryptocurrency regulation has evolved in India?
1. 2013: RBI issued a press release cautioning users. 'They are in the process of studying extant regulatory provisions in India'
2. Feb 2017: RBI issued another press release. 'We're cautioning you again' ...

3. April 2017: Ministry of Finance set up an interdisciplinary committee to study cryptocurrency
(before the ban on cryptocurrencies, the govt also considered a digital currency)
4. July'17: Interdiscplinary admits report, not open for public, not available under RTI because ...

'strategic importance'
[@AjeetK: We were there but they had a negative view of it]
contd. 5. Aug'17: Digital Assets + Blockchain Foundation estd.5. First PIL wrt cryptocurrencies filed in SC
6. Dec'17: 3rd press release by @RBI saying cryptocurrenies are akin to Ponzi schemes,...

... not currency, be careful of them. But still just cautioning.
7. 2nd PIL filed in SC
8. Feb'18: @arunjaitley in budget speech: 'Crypto not legal tender in India'
9. 5.4.18: Press release by RBI considering sovereign digital currency
[NB: Subhash Garg crypto report available]

10. 6.4.18: RBI circular prohibits banks and regulated entities from dealing with or providing service to any person or entity dealing with cryptocurrencies. RBI doesn't have the power to prohibit cryptocurrencies, but it cut the legs off #cryptocurrencies. Hit crypto exchanges

Effective ban on #cryptocurrencies.
Miner in the audience: Not all banks regulated under @RBI, such as Bank of Sikkim
[@AjeetK: That's why we all rushed to Sikkim [laughter]
When the RBI circular came, we had 30 lakh registered customers, but traders were just 2.5-3 lakh]

[@Memeghnad: What happened to people who had crypto assets post-RBI circular?
Tanya:I can't reveal that because privileged information
@AjeetK: I can give that info. Either we, exchanges, shut business, or shifted to P2P mechanism. Still didn't work as some customers, in NEFT...

... transactions wrote '0.000013 BTC' and the banks went 🧐😎 ... eventually led to 95-96% job losses in crypto exchanges in India]
11. writ petition against RBI circular before SC
12. May'18: SC tells rep. to be submitted to RBI against the circular.

The RBI circular broke the mechanism through which it could've checked crypto transactions; it broke crypto exchanges [🤦‍♀️]
[@nixxin: Because of new bill, can you be punished for retroactive crypto holdings?]
Nope, retroactive penalisation doesn't happen. If bill becomes law, ...

... you will get time to dispose of crypto assets.
13. Jul'19: Report by Interministerial Committee + draft bill banning crypto + penalise holding cryptocurrencies considering amendments to PMLA so that even outside India, as an Indian citizen, you can't send back cryptocurrency

14. Aug'19: SC to @RBI, 'These people gave you their arguments. Reply!'
Next hearing on 25 September"
--- Tanya @ikigailaw
#cryptocurrency #NAMA #NAMAbootcamp