The matter of regulating the flow of Bitcoin has been pursued by the Supreme Court in response of the petition by the central government. Notice has been issued by the bench presided by Chief Justice Deepak Mishra, to the ministries of Finance, Law and Justice, Information Technology, market regulator SEBI and the RBI. Advocate Dwaipayan Bhowmick filed a plea and also expressed his opinion on how to frame a mechanism to regulate Bitcoin.
The plea filed said that:
“It is submitted that money used to buy Bitcoin (crypto money) from foreign locations is completely untraceable and may be used for trading and various other financial activities directly from crypto currency accounts without any accountability. It is pertinent to mention herein that such trades affect the market value of other commodities inevitably”
And the petition also included that:
“The Chinese government has banned the issuance of new digital coins for fundraising, also known as initial coin offerings, and the Russian courts pronouncing the transfer of cryptocurrency into Roubles as illegal further highlights the importance of issue whether in India Bitcoin be allowed or not &the same is the primary concern in instant petition”
Advocate Pashupati Nath Razdan said that, “It is pertinent to mention that at present, the Reserve Bank of India regards crypto currencies as a violation of the country’s existing foreign exchange norms. This is because the conversion of Bitcoins into foreign exchange does not currently fall under the purview of the central banking institution making such transactions highly unsafe and vulnerable to cyber-attacks”
Prayers were made regarding formation of a committee to make proper strategy to regulate the flow of bitcoin.
Courtesy/By: Rishabh Agarwal
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25 Dec 2017
