Self Inflicted disaster strikes on Bitcoin Start ups

Today’s report in Times of India states that “Crypto, Startup players worry about action on Unicoin” 

This follows the news that the second co-founder of Unocoin namely Mr Sathvik Vishwanathan was also arrested following the arrest of another co-founder B V. Harsih a few days back.  It is unfortunate that the company Unocoin and it’s promoters find themselves in this predicament.

However, it is necessary to point out that Naavi.org has been pointing out that the operations of Bitcoin in India is an undesirable activity and the way it was operated was always illegal.

The moment some body refers to Bitcoin as a “Currency”, they are committing an offence for which they can be arrested. When they call a vending machine a “Bitcoin ATM”, they are making another mistake for which they could be and are being arrested.

Whatever people say, Bitcoin is an open challenge to the national currency system and promotes conversion of currency into un-identifiable asset. The fact that it has a market abroad and some recognition by Governments is not a virtue. It makes Bitcoin as an “Unauthorized Foreign Currency” and directly in violation of FEMA.

Naavi has personally taken up a crusade against Bitcoin and has tried to move every law enforcement institution without sparing even Mr Modi. We are therefore happy that at last the Bangalore Police acted when they were challenged with the ATM concept.

We need to see how this case will be followed up, but the beginning has been good.

The Start up industry should have noted that last Diwali there was a full page advertisement asking investors to invest in Bitcoin instead of Gold. There has been advertisements for recruitment of a CEO also for Bitcoin operations in Bangalore both of which were vehemently opposed by Naavi.

Despite this, the argument “RBI has not said Bitcoin is illegal. It has only said it is not legal, the two are different..etc” were given out to continue doing this business of money laundering through Bitcoins.

I will therefore be happy that finally a lesson is being driven home to the “Technology Intoxicated Entrepreneurs” who think that “Disruption” means “Challenging the current legal and economical structure” of the society.

I am sorry that I will be hurting the sentiments of many of my friends who have their hard earned money stuck in Bitcoins. But at least I can feel that I have warned them enough number of times and they had ignored my warnings.

These startups who are complaining now should have at least woken up when Zebpay ran out of the country but failed to do so.

Hence I consider this as a self inflicted disaster the Bitcoin entrepreneurs have inflicted on themselves. If they continue to ignore the developments and try to argue that Bitcoin is not illegal, Bitcoin is great for the economy etc.,even God cannot save them.

Naavi

Reference Articles

Also see:

Petition in Cryptocurrency case quashed

Now, CEO held for installing Cryptocurrency Kiosk

Legal or not? The curious case of “city’s bitcoin ATM”

Interview of Sathvik explaining the functioning of ATM

Print Friendly, PDF & Email
This entry was posted in Cyber Law and tagged . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.