Relief for MTC virtual currency holders

New Delhi: Money Trade Coin (MTC) and its promoter Amit Lakhanpal has announced that it is adopting a multi-pronged approach in addressing the concerns of its virtual currency holders.

Lakhanpal said, "We have adopted a multi-pronged approach to address the concerns of our currency holders. In the wake of RBI order, the interest of our currency holders was jeopardised. This prompted us to explore various options, some of which have materialised and others will mature over the coming days."

He was referring to the RBI's April 6 notification, which said, "Reserve Bank has repeatedly through its public notices on December 24, 2013, February 01, 2017 and December 05, 2017, cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies.

In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs.

Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase/ sale of VCs.

Regulated entities which already provide such services shall exit the relationship within three months from the date of this circular.

These instructions are issued in exercise of powers conferred by section 35A read with section 36(1)(a) of Banking Regulation Act, 1949, section 35A read with section 36(1)(a) and section 56 of the Banking Regulation Act, 1949, section 45JA and 45L of the Reserve Bank of India Act, 1934 and Section 10(2) read with Section 18 of Payment and Settlement Systems Act, 2007."

According to MTC's revival plan, currency holders will be able to redeem their coins on online shopping portal. Through this portal people will be able to buy various reasonably priced products with a minimum order value of Rs. 2000. Out of this order value Rs. 800 (40 percent) can be redeemed against MTCX priced at 3 USD per coin as per company's earlier commitment. The balance of Rs. 1200 plus delivery charges will have to be paid in Fiat currency. The list of products that will be available for sale on another portal can be viewed on www.tymkhealth.com.

The second avenue available to customers is through the Al Kasir portal on which currency holders can redeem 75 percent MTC against a diamond backed asset and balance 25 percent has to be paid as Fiat currency. The purchase comes with a lucrative buy back of 10 USD per asset on company's platform. The platform also offers three different assets along with diamonds.

The third option available for customers is to trade on company's own exchange. On this exchange, people will not be allowed to trade below minimum promised amount of 3 USD, thereby securing coin holders' interest. This will also allow long term coin holders to get better value for their coins. For short term coin holders the company has also planned a buy-back of 10 to 25 MTC per day depending on market dynamics.

A fourth option available for those who want to exit over short term is selling on public exchange Live Coin. Over the past few days MTCX has been the most traded coin on this platform with daily average volume touching 10 lakh coins.

The company has also tied-up with UK BASED Zenith Top Ltd to redeem up to 15 pe rcent MTCX under sales promotion programme for products like Ion Band and Nano Fabric.

The company is also looking at various other tie-ups to ensure protection of coin holders' interest. It is looking at tie-ups with online educational platforms which offer numerous online courses and travel solution companies offering Indian and international holidays. Coin holders will be able to redeem 100 per cent MTC on these platforms.

It has also tied up with some agents to sell general, motor and life insurance policies where you can pay 15 per cent to 50 per cent of premium via MTC.