India is quite known for its stand against cryptocurrency, especially as the country has effected a few financial restrictions to the effect. Now these restrictions have affected the police in India, from gaining access to crypto seized in 2018, from a ponzi scheme.
According to reports, the Reserve Bank of India (RBI), has blocked a bank account which contains more than $1 million worth of Bitcoins it seized last year, from Akash Kantilal Sancheti, the alleged mastermind behind a “Gain Bitcoin” scam which rocked the country last year. The Pune city police department, in an effort to recover some of the stolen funds, sold the Bitcoin for Indian Rupees (INR). The department is however unable to access the funds because of the country’s law against cryptocurrency. The funds are reportedly blocked in the bank account of a Discidium Internet Labs Private Ltd., the company contracted by the Pune police, to handle the conversion to INR. Now, Discidium Internet is trying to recover the funds, and has officially requested that the money be unfrozen by the Central Bank of India. Discidium Internet runs Koinex, a cryptocurrency exchange in India.
Last year, the RBI released a circular which specifically states that all banks and other payment companies, should cease cryptocurrency transactions. Released in April 2018, the circular specified that trading, clearing, holding accounts as well as receiving funds related to cryptocurrencies, were no longer allowed.
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