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<ul><li>With the cryptocurrency bill looming large, consumers have been worried about their investments in <keyword id="2420795" type="PERSON" weightage="20" keywordseo="cryptocurrencies">cryptocurrencies</keyword> like <keyword id="6354947" type="UNKNOWN" weightage="20" keywordseo="bitcoin">Bitcoin</keyword>, Ethereum and others.</li><li>We spoke to industry sources and exchanges to answer your questions, and help you understand if you should sell your Bitcoin and Ethereum investments.</li><li>One of the key takeaways is that you should not panic.</li><li>Read on to find out what you should do in case cryptocurrencies are banned.</li></ul>One of the biggest questions in the minds of Indians holding cryptocurrencies is if they should sell their crypto investments before the Indian government bans them. It is not an easy question to answer as there is little information from the government in this regard as of now. If you are panicking about your investments in Bitcoin, Ethereum, dogecoin and other cryptocurrencies, we are here to answer your questions. <cmsannotation type="cmsannotation" annotationid="Should I sell my cryptocurrencies?" comment="subhead" text="Should I sell my cryptocurrencies?">Should I sell my cryptocurrencies?</cmsannotation> Don’t panic. Panic selling could prove to be counterproductive, especially since we don’t have enough information about the bill. “Cryptocurrency holders in India should not panic. They should wait for the government to reveal all the details about what is being banned or not, and then take a decision accordingly,” said Nischal Shetty, co-founder of WazirX. “Consumers need not panic and sell their crypto investments. CoinDCX has put in safeguard measures to ensure investors are protected, and we have the liquidity to help consumers liquidate their investments if they want to,” said Sumit Gupta, co-founder and CEO of CoinDCX. “Consumers who are holding cryptocurrencies should not sell their investments in haste. The information in the public domain is incomplete, the details are still not finalised and ban may not materialize,” said Arjun Vijay, co-founder of Giottus Cryptocurrency Exchange. What happens if the government bans cryptocurrencies? The government will likely give investors some time to liquidate their cryptocurrency holdings, so you should not worry about it right now. “Even if the government bans cryptocurrencies, it will likely give some time to Indian investors to liquidate their assets,” Vijay further added. Will the government ban holding cryptocurrencies in foreign countries? The details are not available right now, so it is suggested that you wait and watch for official information from the government. Can I invest in cryptocurrencies via the Liberalised Remittance Scheme? It might be possible to invest in foreign countries taking advantage of the Liberalised Remittance Scheme that allows resident individuals in India to invest up to $2,50,000. However, in view of absence of details about the crypto ban, you should adopt a wait and watch approach. Will banks freeze my account if I invest in cryptocurrencies? This is unlikely as your bank account and cryptocurrency investments are not related. Will I be able to withdraw money from cryptocurrencies into my bank account? As things stand right now, there is no restriction on selling cryptocurrencies and withdrawing those funds into your bank account. Even if the government bans cryptocurrencies, it is likely to give some time to investors to liquidate their assets. “Consumers need not worry about cashing out their investments and receiving money in their bank accounts,” Gupta added, assuring that your money will not go down the drain. According to Shetty, millions of Indians hold over INR 10,000 crore in total in various forms in cryptocurrency investments. The government will give them a way out even if it bans cryptocurrency trading. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/heres-what-6-crypto-experts-said-about-teslas-1-5-billion-investment-into-bitcoin/articleshow/80754586.cms">Here's what 6 crypto experts said about Tesla's $1.5 billion bitcoin investment</a> <a href="https://www.businessinsider.in/stock-market/news/a-crypto-fear-and-greed-indicator-is-flashing-a-warning-signal-that-shows-investors-are-being-extremely-greedy-as-top-cryptocurrencies-hit-record-highs/articleshow/80771973.cms">A crypto 'fear and greed' indicator is flashing a warning signal that shows investors are being extremely greedy as top cryptocurrencies hit record highs</a> <a href="https://www.businessinsider.in/stock-market/news/bitcoins-spike-drives-rebound-in-hard-hit-crypto-mining-stocks/articleshow/80589491.cms">Bitcoin's spike drives rebound in hard-hit crypto mining stocks</a>

“Should I sell my cryptocurrencies?” and other questions answered on India’s proposed Crypto Ban bill

The Supreme Court of India has struck down a ban on banks dealing with cryptocurrencies in India, paving the way for users to start trading with renewed vigour in cryptocurrencies. While there was no ban on cryptocurrencies, the Reserve Bank of India in 2018 put a ban on banks from dealing with virtual currencies like Bitcoin. The central bank also asked banks to exit all existing relationships with cryptocurrency exchanges. Now that this roadblock too <a href="https://www.businessinsider.in/cryptocurrency-trading-can-restart-in-india-after-top-court-removes-rbi-ban-calling-it-unconstitutional/articleshow/74470872.cms">has been cleared</a>, here is how you can gain from the move. What is a cryptocurrency? Cryptocurrency is a virtual currency that can be exchanged online for goods and services. Cryptography is used to secure and verify the transactions. Unlike traditional currencies, cryptocurrencies are not issued by a central bank and depend on a peer-to-peer system. How to open a <keyword id="8871185" type="UNKNOWN" weightage="20" keywordseo="crypto-trading-account">crypto trading account</keyword> in India? There are several cryptocurrency exchanges from where you can buy and sell cryptocurrencies like Zebpay, Unocoin, Coinmama and more. Today, we will show you how to use Zebpay to buy and sell cryptocurrencies in India. Zebpay allows you to purchase various virtual currencies and store them. How to use Zebpay to buy and sell cryptocurrency <div type="image" title="Zebpay" msid="74490879" hostid="261"></div>

 <ul><li>Download and install the Zebpay app for <a href="https://play.google.com/store/apps/details?id=zebpay.Application">Android</a> and <a href="https://apps.apple.com/in/app/zebpay-bitcoin-wallet/id944854686">iOS</a>. </li><li>Open the app and click on ‘Let’s go’ at the top. </li><li>Enter your phone number and click on ‘Proceed securely’. </li><li>Now, click on ‘Continue to Set Account PIN’.</li></ul> <div type="image" title="Zebpay" msid="74490890" hostid="261"></div>

 <ul><li>Now, enter a four-digit PIN. </li><li>Re-enter the four-digit PIN. </li><li>Once you have set the PIN, you can opt to use the fingerprint sensor. </li></ul><div type="image" title="Zebpay" msid="74490905" hostid="261"></div>

 <ul><li>Now, click on ‘Verify Email Address’. </li><li>Enter your name and email address. </li><li>Go to your mail and verify your account.</li></ul> <div type="image" title="Zebpay" msid="74490918" hostid="261"></div>

 Now you will be asked to provide your ID proof and address proof. <ul><li>Click on ‘Continue’. </li><li>For ID proof, you can submit your PAN card. </li><li>Upload the front of your PAN card and click on ‘Continue. </li></ul> <div type="image" title="Zebpay" msid="74490925" hostid="261"></div>

 <ul><li>For address proof, you can submit your Aadhaar card, driving license, passport or a utility bill dated within the last three months. </li><li>Select an address proof and upload it. </li><li>Click on ‘Continue’. </li><li>Now, select your source of funds and occupation. </li><li>Then, click on ‘Continue’. </li></ul>Once your KYC details are verified, you can start trading in cryptocurrency. <div type="image" title="Zebpay" msid="74490953" hostid="261"></div>

 Here are the cryptocurrencies available on Zebpay. <div type="image" title="Zebpay" msid="74490930" hostid="261"></div>
 You can select from the available currencies, enter the amount and click on ‘Buy’. See also: <a href="https://www.businessinsider.in/cryptocurrency-trading-can-restart-in-india-after-top-court-removes-rbi-ban-calling-it-unconstitutional/articleshow/74470872.cms">Cryptocurrency trading can restart in India after top court removes RBI ban calling it 'unconstitutional'</a> <a href="https://www.businessinsider.in/business/startups/news/crypto-community-in-india-is-rejoicing-exchanges-are-ready-to-reopen/articleshow/74472080.cms">Crypto community in India is rejoicing ⁠— exchanges are ready to reopen</a> <a href="https://www.businessinsider.in/business/news/indias-crypto-market-was-worth-12-9-billion-in-2017-before-it-incurred-the-rbis-wrath/articleshow/74474034.cms">India’s crypto market was worth $12.9 billion in 2017 before it incurred the RBI's wrath</a>

How to open a cryptocurrency trading account in India

<ul><li>Facebook has confirmed that their new cryptocurrency, Libra, won’t be coming to India. </li><li>Reserve Bank of India (RBI) banned dealing in cryptocurrency and proposed a law which could lead to 10 years in jail if its guidelines are violated. </li><li>Facebook’s spokesperson told <a href="https://www.bloomberg.com/news/articles/2019-07-09/facebook-has-no-india-plans-for-calibra-wallet-cryptocurrency">Bloomberg</a> that they will continue to work with the Indian government to see if the current mandate be updated. </li></ul>Facebook has confirmed that its new cryptocurrency, Libra, won’t be making its way to India. The social networking giant has said that unless the country’s Central Bank, the Reserve Bank of India (RBI), changes its policies, Libra and Calibra’s digital wallet services won’t be launching in the country. “There are no plans to offer Calibra in India,” a Facebook spokesman told <a href="https://www.bloomberg.com/news/articles/2019-07-09/facebook-has-no-india-plans-for-calibra-wallet-cryptocurrency">Bloomberg</a>, “As you may know, there are local restrictions within India that made a launch of Calibra not possible at this time.” It could be a big blow to Facebook’s plans for its cryptocurrency. According to <a href="https://www.bloomberg.com/news/articles/2019-06-20/-mushrooming-india-growth-potential-driver-for-facebook-s-libra">Jefferies Financial Group</a>, Libra was counting on emerging markets like India for explosive growth, where Facebook already has over 310 million users. RBI vs Facebook The RBI came down hard on cryptocurrencies last year when it banned its use, and told banks to disassociate themselves from cryptocurrency exchanges. Last month, the RBI proposed a <a href="https://economictimes.indiatimes.com/news/economy/finance/draft-law-proposes-10-year-jail-term-for-dealing-in-cryptocurrency/articleshow/69693984.cms">new draft law</a> — Banning of Cryptocurrency and Regulation of Official <keyword id="1624829" type="PERSON" weightage="20" keywordseo="digital-currency">Digital Currency</keyword> Bill 2019 — which proposes jail time of up to 10 years if anyone is found dealing in cryptocurrency. The government is also reportedly working on launching its own cryptocurrency, backed by the state, to counter the prevalence of digital currencies. Subhash Garg, India’s economic affairs secretary, <a href="https://www.bloomberg.com/news/articles/2019-07-08/facebook-s-libra-currency-faces-skeptical-government-in-india">reacted</a> to Facebook’s white paper on Calibra saying that the government would not be ‘comfortable’ with the launch of Calibra in India, especially since its a ‘private’ cryptocurrency. But Facebook isn’t giving that easy. Alexandru Voica, Facebook’s representative in London, told <a href="https://www.bloomberg.com/news/articles/2019-07-09/facebook-has-no-india-plans-for-calibra-wallet-cryptocurrency">Bloomberg</a> that the company is still working with regulators to see if India’s policy for cryptocurrencies can be updated.

Facebook has confirmed that Libra isn’t coming to India as government shies away from ‘private’ cryptocurrencies

Way back when Bitcoin was invented, India was the first country to acknowledge it as an alternative monetary system. Though India started lauding Bitcoin without knowing the plethora of scams it could encourage, the political and economic conditions in the country were favorable for Bitcoin to thrive. However, the recent trends show that India is becoming the first country on the globe to regulate the cryptocurrency. The effects of demonetization When the Reserve Bank of India announced the demonetization of 500 and 1000 rupee currency notes on November 8, 2016, the Indian public started realizing that cash was unreliable. During that time, the scenario gave a great impetus for the young people in the country to turn to Bitcoin. In fact around this time, a sizeable chunk of the corporate world in the country was already using Bitcoin. Since the digital coin gave a safer system for the public to invest their money, a growing number of people started resorting to the use of Bitcoin. Does not need a bank account A large segment of the Indian population still does not have a bank account. Bitcoin enables such individual to make financial transactions quickly and securely without a bank account. Indian companies and Bitcoin More than 500 merchants in India and five large enterprises in the country including Dell accepted payments in cryptocurrency. This number is fast growing today. No doubt Bitcoin is still not that popular in India. A lot of Indians highly prefer paper money. However, as per the study of the emerging trends in the country, the frenzy for Bitcoin is fast spreading in the country. Indian government and Bitcoin Earlier in 2019, the Supreme Court of Indi came up with a four-week deadline urging the government to bring in some regulations of the cryptocurrencies in the country. The government has already taken a firm stand to deal with cryptocurrency in a strict way and looking forward to banning it. Consultations have already begun on the bill called "Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019". These moves by the country show us that the government of India is clear with its hostile stand against cryptocurrency. What can happen to Bitcoin in India Expert circles say that the country could be seen banning cryptocurrency under the Prevention of Money Laundering Act (PMLA). Meanwhile, the Ministry of corporate affairs has pointed out that those dealing with Bitcoins are falsely induced of massive returns. These schemes are not transparent and they never fall into any legal framework that are regulated. Many gullible investors are seen falling victims to a number of scams connected with Bitcoins. RBI has gone a step further to announce that it can never provide services to individuals and businesses that are dealing with Bitcoins or settling in virtual currencies. BP Kanungo, Deputy Governor, RBI has stated, “We have decided to ring-fence the RBI regulated entities from the risk of dealing with entities associated with virtual currencies. They are required to stop having a business relationship with the entities dealing with virtual currencies forthwith and unwind the existing relationship within a period of three months". Severe measures contemplated in India It appears that the "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019" draft has also on its proposal 10-year prison sentence for those individuals found mining, generating, selling, holding, transferring, disposing of, dealing with or issuing cryptocurrencies. Hence we could possibly see a ban on Bitcoins in India in the near future.

Explained: What is Cryptocurrency in India

<ul><li>The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> has banned regulated institutions from dealing with crypto exchanges.</li><li>The <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>'s decision will come into effect in three months from now.</li><li>The move could effectively ban cryptocurrency in India.</li></ul>When online poker first flourished in India, many players couldn't transfer money from their poker accounts to their bank accounts. This, basically meant that win or lose, they could make no liquid cash from playing Poker online. The solution? Players decided to transfer the money amongst themselves within the poker sites. So, if you transferred $300 to my account on website A, I could transfer $300 from my bank to yours. The rationale being, that I was going to put in $300 in my poker account anyway. That can't happen with cryptocurrencies anymore. The RBI today banned regulated institutions from dealing with crypto exchanges. The rule comes into effect three months from now, which is the time these institutions have to get their affairs in order. The move doesn't ban crypto usage in India, but it's almost like a demonetisation of cryptocurrency. Three months hence, you won't be able to perform NEFT, UPI or other transactions with crypto apps and websites, like Unocoin, Zebpay and more. This is two-way, meaning you can neither deposit nor withdraw from such apps and websites. But India also isn't a stranger to cryptocurrency usage. Many have invested in modes like <keyword id="6354947" type="PERSON" weightage="20" keywordseo="bitcoin">Bitcoin</keyword>, Ethereum etc. In fact, a Bitcoin <a href="https://www.businesstoday.in/current/corporate/cryptocurrency-guru-arrested-for-bitcoin-ponzi-schemes-scam-could-run-into-rs-13000-crore/story/274255.html" data-type="tilCustomLink">entrepreneur</a> was recently arrested for scamming investors out of ₹2000 crore (just over $30 million). Will they just lose all these investments? Well, they obviously have three months to transfer these earnings to banks, converting them to cash and hence paying tax. Or, crypto exchanges could just start considering cold hard cash. That should work, at least as long as Demonetisation 2 doesn't happen. For best results, when you want your cryptocurrencies to be exchanged for real money, exchanges will have to deliver cash to you. And if you think this is an impossible scenario, there's a case study already available. Human Cash Haulers An <a href="https://www.fastcompany.com/3067778/the-blockchain-is-going-to-save-immigrants-millions-in-remittance-fees">app called Abra</a> employs "human tellers" to transfer money across the world, using the crypto medium. Unlike crypto exchanges, <keyword id="3110208" type="PERSON" weightage="20" keywordseo="Abra">Abra</keyword> operates like a regular e-wallet. Users load cash onto their wallets, which they can transfer to others. Abra, in turn, converts the money to cryptocurrency and uses the blockchain to transfer it across the world, or just a few metres away. The receiver has to find a human teller near him, which can be an individual or business, and take the amount in local currency. Think of them as Crypto Angadias - the traditional Indian community of human couriers from <keyword id="6354766" type="LOCATION" weightage="20" keywordseo="Gujarat">Gujarat</keyword> who haul cash for the diamond and gold industry in the state by operating furtively between Mumbai and Gujarat. It is said that Angadias carry a few hundred crore rupees worth of high-value goods and cash between Mumbai and Gujarat everyday. For a cash-rich country like India, could this be a solution to continue crypto usage within our borders. RBI wants its own cryptocurrency Interestingly, while the government seems keen to ban cryptocurrencies, the RBI doesn't seem to have given up on the idea of floating one of its own. The apex bank has set up a panel to implement India's own fiat cryptocurrency, that's regulated and dispersed by banks. While that may break the core philosophy of crypto modes like Bitcoin, i.e, democratising currencies, it could help reduce the cost of printing bills. It would also be in line with the government's push to promote digital payments in the country. While the RBI's ruling may have effectively banned the use of cryptocurrencies in India, the country doesn't seem ready to give up on it yet.

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“Should I sell my cryptocurrencies?” and other questions answered on India’s proposed Crypto Ban bill

Rounak Jain

How to open a cryptocurrency trading account in India

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Facebook has confirmed that Libra isn’t coming to India as government shies away from ‘private’ cryptocurrencies

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Explained: What is Cryptocurrency in India

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Crypto Angadias: RBI's crypto ban might incentivise human tellers for cryptocurrency transactions

Prasid Banerjee

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