

Powered by


Supreme Court Seeks Govt's Response on Plea to Regulate Bitcoin
Bitcoin is a digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.
The prevailing rate of exchange of one Bitcoin in India is almost Rs 4.3 lakh, as per information available on the internet on Tuesday. (Image: Reuters)
New Delhi: A plea to regulate the flow of Bitcoin and ensure that this virtual currency be made accountable to the exchequer on Tuesday led the Supreme Court to seek a response from the Centre.
A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud issued notice to the ministries of Finance, Law and Justice, Information Technology, market regulator SEBI and the RBI, on the plea which also sought setting up of a panel to frame a mechanism to regulate the flow of Bitcoin.
Bitcoin is a digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.
It was introduced in 2008 by an unidentified group of programmers as a cryptocurrency as well as an electronic payment system. It is reportedly the first decentralised digital currency where peer-to-peer transactions take place without any intermediary.
The plea, filed through advocate P N Razdan, also sought responses from the Income Tax department and the Enforcement Directorate.
Petitioner advocate Dwaipayan Bhowmick, in his plea, has said that the money used to buy Bitcoin from foreign locations is completely untraceable and may be used for trading and other financial activities directly from crypto currency accounts without any accountability.
"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," it said.
The plea claimed that despite the RBI's call for caution to people against the use of virtual currencies, domestic Bitcoin exchange have been adding over 2,500 users a day and has reached five lakh downloads.
The petition also said that the Bitcoin was not tied to any bank or government and allowed the users to spend money anonymously.
"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.
The prevailing rate of exchange of one Bitcoin in India is almost Rs 4.3 lakh, as per information available on the internet on Tuesday.Also Watch
A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud issued notice to the ministries of Finance, Law and Justice, Information Technology, market regulator SEBI and the RBI, on the plea which also sought setting up of a panel to frame a mechanism to regulate the flow of Bitcoin.
Bitcoin is a digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.
It was introduced in 2008 by an unidentified group of programmers as a cryptocurrency as well as an electronic payment system. It is reportedly the first decentralised digital currency where peer-to-peer transactions take place without any intermediary.
The plea, filed through advocate P N Razdan, also sought responses from the Income Tax department and the Enforcement Directorate.
Petitioner advocate Dwaipayan Bhowmick, in his plea, has said that the money used to buy Bitcoin from foreign locations is completely untraceable and may be used for trading and other financial activities directly from crypto currency accounts without any accountability.
"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," it said.
The plea claimed that despite the RBI's call for caution to people against the use of virtual currencies, domestic Bitcoin exchange have been adding over 2,500 users a day and has reached five lakh downloads.
The petition also said that the Bitcoin was not tied to any bank or government and allowed the users to spend money anonymously.
"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.
The prevailing rate of exchange of one Bitcoin in India is almost Rs 4.3 lakh, as per information available on the internet on Tuesday.
Also Watch
World Earth Day: Juhi Chawla Talks Environment, Advocates ‘No Plastic’ Policy
Friday 20 April , 2018
Is Your MP/ MLA Accused of Crime Against Women?
Wednesday 18 April , 2018
Karnataka Election 2018: The Good, The Bad and The Tainted Candidates
Friday 20 April , 2018
Watch: Quin Smart Helmets | Feature
Friday 20 April , 2018
Story So Far: Sacked AAP Advisor Raghav Chadha Returns Salary of Rs 2.50 to Home Ministry

World Earth Day: Juhi Chawla Talks Environment, Advocates ‘No Plastic’ Policy

Friday 20 April , 2018
Is Your MP/ MLA Accused of Crime Against Women?

Wednesday 18 April , 2018
Karnataka Election 2018: The Good, The Bad and The Tainted Candidates

Friday 20 April , 2018
Watch: Quin Smart Helmets | Feature

Friday 20 April , 2018
Story So Far: Sacked AAP Advisor Raghav Chadha Returns Salary of Rs 2.50 to Home Ministry
Recommended For You
Arsenal Give Arsene Wenger Reason to Smile With West Ham Hammering
Ali Zafar Sexual Harassment Case: Momina Mustehsan Urges the Singer to Apologise
Cyber Terrorism: Teen Gets Two Years Jail For Accessing CIA Head's Email Account
2018 Volkswagen Polo GTI, Golf GTI & Up GTI Driven: What's So Special about These Performance Cars?
Bollywood Star Jacqueline Fernandez Gifts Make-Up Artist Jeep Compass SUV – Watch Video