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Supreme Court Wants Centre To Respond To A Plea Seeking Regulation of Bitcoins

A plea has been filed in Supreme Court directed towards Income Tax department and the Enforcement Directorate.

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Bitcoins

This can be both good and bad news the enthusiasts and traders of cryptocurrency in India.

Supreme Court has received a plea, seeking regulation of bitcoins in India; and in turn, Supreme Court has sent a notice to Govt. of India in order to get a response.

Good news, because finally we will have a clear cut response regarding the future of bitcoins in India; and bad because if Govt. decides to regulate it, then its very survival can be threatened.

Will bitcoins be able to survive in India?

Bitcoins Needs To Be Regulated: Plea Filed In SC

A plea has been filed in Supreme Court via advocate P.N. Razdan, directed towards Income Tax department and the Enforcement Directorate.

Petitioner advocate Dwaipayan Bhowmick has said in the plea that money being circulated via bitcoins is completely unregulated, and can pose a risk to India’s security and safety, besides encouraging illegal trades and businesses.

As per the plea, no doubt RBI has warned against the use of bitcoins, but still around 2500 new traders are registered per day in India, bitcoin exchanges are receiving 5,00,000+ downloads a month.

The plea stated:

“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,”

In response to this plea, A bench of Chief Justice Dipak Misra and Justices A.M. Khanwilkar and D.Y. Chandrachud has issued notices to Ministries of Finance, Law and Justice, Information Technology, market regulator SEBI and the RBI.

Supreme Court has sought their inputs and suggestions regarding creation of a mechanism through which bitcoins can be regulated, and made accountable.

You can find the full text of the plea here.

Are Bitcoins Dangerous?

The nature of bitcoins is that, it cannot be traced, and there is no central authority which controls it. RBI prints currencies which is used in India, and hence , RBI is the central authority over its distribution and usage.

When RBI wants to increase the number of Rs 500 notes, they can do easily.

On the other hand, bitcoins are mined by millions of computers spread all over the globe; and the value changes based on some complex algorithm. No one controls it, and no one owns it.

And this makes bitcoin untraceable, independent.

This is the reason that bitcoins are now heavily preferred by hackers, kidnappers, criminals to receive their money – Simply because no one can track them.

This year in October, when data from UIDAI, RBI, BSE, ISRO was leaked, the hackers demanded ransom via bitcoin.

When Wipro faced a bio-attack, it was bitcoin which was preferred as the ransom mode. Be it WannaCry ransomware or buying illegal drugs – bitcoins is the most preferred currency right now.

Just like guns can be used for both good and evil purpose; bitcoins are being used for both good and evil purpose. Maybe Govt. should regulate evil activities, rather than a medium which is being used for these evil activities?

Do share your comments and opinions on this issue, by commenting right here!

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