The Pune Police in a recent update has sought a court directive to transfer a sum of Rs 85 million ($1.2 million). The sum was seized from a Bitcoin (BTC) Ponzi scheme last year.

Funds Worth $1.2 Million Blocked

Per an article by leading national daily, Times of India, the cyber police have revealed that 244 cryptocurrency units (worth $1.2 million) have been blocked in the bank account of company Discidium Internet. However, owing to regulatory uncertainty in India, the Central Bank of India is unable to transfer the money to the State Bank of India’s treasury branch in Pune; the reason being that the account of the Discidium Internet was frozen by the Reserve Bank of India (RBI).

District government pleader Ujjwala Pawar said,

“The police’s plea is pending before the sessions court. The RBI has furnished its reply to the court’s notice of September 17 to Praneeth Panjaria, the manager of the Department of Payment and Settlement Systems in Mumbai.”

Subsequently, the firm has challenged RBI’s order which has prohibited Indian residents from dealing in any sort of virtual currencies and requested the RBI to help with unfreezing the account.

On the other hand, RBI in its reply on the 20th of September replied that the latter’s account was not frozen and nor had Central Bank been directed to do so.

The Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019”, has proposed a 10-year prison sentence for anyone who holds, mines sell, transfers or deals in cryptocurrencies.

A Ray of Hope For Crypto Asset Holders

While the regulatory uncertainty in India continues to prevail, Bitcoin pioneer, Member of Parliament and the founder of the BitInstant & Bitcoin Foundation, Rajeev Chandrasekhar in a recent interview said that India has the potential to become one of the largest crypto industries in the world. Furthermore, he said that the Indian government is not entirely against crypto – but it will take some time before it joins the crypto party.

Will cryptocurrencies see the green light in the Indian sub-continent? Let us know what you think in the comments below!

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