According to The Hindu, one of the leading news publications in India, Supreme Court of India seeks help from the Central government with an aim of regulating the flow of Bitcoins and ensuring accountability of this volatile currency to the exchequer.
A bench of Chief Justice Dipak Misra, along with Justices D.Y. Chandrachud and A.M. Khanwilkar have issued a notice addressed to RBI, market regulator SEBI and the ministries of Finance, Law and Justice, Information Technology with the plea of setting up a working committee to look after the regulatory aspects of Bitcoin mechanism.
The plea has been filed through advocate P.N. Razdan.
P.N. Razdan has also filed a plea seeking responses from the Enforcement Directorate and the Income Tax department regarding the same. Dwaipayan Bhowmick, a petitioner advocate has stated in this plea that: “It is submitted that certain countries have made Bitcoin (crypto money) subject to their respective tax regimes, while a few other countries have designated it as a commodity, thereby making Bitcoin subject to government regulation and accountable to the exchequer, but no such mechanism exists in India till date.”
With Bitcoin hogging the lime lights for a long time now, mass awareness has been spread about the same. It refers to a form of digital currency which allows people to enter into transactions without having to involve the credit card issuers, banking bodies or other third parties. Since its introduction in 2008 by an anonymous creator under the pseudonym Satoshi Nakomoto, it has widely been used as an electronic payment system as well as a crypto currency. It is the first decentralized architecture which fosters peer-to-peer dealings based on the underlying Blockchain technology.
Also Read: Bitcoin.org Owner Desires To Change Satoshi Nakomoto’s Bitcoin White Paper
He holds the opinion that buying Bitcoin from foreign sources is almost untraceable and can even be used for financing malicious activities without holding any accountability towards the occurrence of the same. The plea also claimed that domestic Bitcoin exchanges have been increasing their client base by more than 2500 participants on a daily basis irrespective of RBI’s call for caution warning people against its dark side.
“The coins are created by users who ‘mine’ them by lending computing power to verify other users’ transactions. They receive Bitcoins in exchange. The coins also can be bought and sold on exchanges with US dollars and other currencies,” the plea said.
At the time of publishing this article, a single Bitcoin was priced around Rs. 4,90,000 whereas internationally, the price was $6940 with a market capitalization of around $115 Billion.
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