Rule on Cryptocurrencies urged by India’s Supreme Court

Indian Government is aimed to set the control in the sphere of cryptocurrencies in the best interest of all the participants
10 April 2018   286

The Reserve Bank of India since 2013 has been publishing warning recommendations about cryptocurrency. Nevertheless, the Governmental directions towards digital money would only relate on the swindlers and scammers who will flout the laws of the country.

Indian Ministry of Finance had also founded an inter-disciplinary committee, which  was also stated to examine the regulatory base with consideration to Virtual Currencies. The committee included representatives from different Government structures, especially stock exchange board of India and Reserve Bank of India (RBI).  

In the middle of 2017 bitcoin became extremely demanded because of the growth in price and huge benefits earned by the investors. Together with the bitcoin`s increased popularity, crimes and fraud also enlarged and then began the period of knocking the doors of Supreme Court by activists.

The first Public Interest Litigation (PIL) was offered up before the Supreme Court by Mr. Vijay Pal Dalmia Advocate, by way of Writ Petition filed under Article 32 of the Constitution seeking a ban on cryptocurrencies` sale and purchase (including bitcoin, litecoin, etc) in India. Finally the RBI instead of clarifying its position on the issue evasively replied while giving information about the appointment of Inter-Disciplinary Committee by the Ministry of Finance.

Two Public Interest Litigations (PIL) are waiting for adjudication before the Supreme Court since November 2017 and remarkably the Government has not revealed its stance before the Supreme Court whether it is in favor or against the Crypto ecosystem.

The new RBI notification severing fiat-crypto ties will probably be challenged in the Court of Law. Today the parties with contesting interests are face-to-face before the Supreme Court, a gavel stroke of which will determine the future of cryptocurrencies in India.

The atmosphere on the social media specifies that the Crypto community is hopeful of a postponement from the Supreme Court. And like in other statement of John McAfee, “You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust”.

Myth of Total Illegal Bitcoin Use rejected by Scientist

Quebec Chief Scientist (Canada), Rémi Quirion, has issued a rejection for the “myth” that illegal transactions are among those for which BTC is basically used
25 April 2018   59

Chief Scientist is closely connected with the Fonds de recherche du Québec (FRQ) – a publicly funded establishment founded for “providing support for the production and dissemination of knowledge.” Mr. Quirion states that Bitcoin is often accused of being a good tool for crime or money laundering, adding that “Even Christine Lagarde, president of the International Monetary Fund (IMF) recently called for more regulation of cryptocurrencies to counter illegal activities.”

Quebec’s Chief Scientist insists on bitcoin offers its customers “pseudonymity,” rather than total anonymity, which detracts from its potential illicit usage. Mr. Quirion cited Jonathan Hamel, who has denied that the public nature of bitcoin’s blockchain diverts from its anonymity.

Every transaction is transparent and public. They are indeed recorded in a kind of ledger whose copies are distributed among thousands of computers.
Jonathan Hamel, Cryptocurrency Analyst, Associate Researcher, Montreal Economic Institute

Erwan Joncheres, Cryptocurrency analyst, is also mentioned in the document.  He has also denied statements that bitcoin and money laundering go alongside.

I think that tax evasion and money laundering are anecdotal on cryptocurrency networks. Since bitcoin is transparent, it will be very easy to identify all the people trading on an online exchange or portfolio platform.
Erwan Joncheres, Cryptocurrency Analyst

The document underlines the research conducted by the Center for Sanctions and Illicit Finance of the Defense of Democracies Foundation that, after analyzing bitcoin transactions made between 2013 and 2016, revealed that only 0.61% of trading transactions in the period were associated with illegal activities. The Chief Scientist refers center’s findings that illegitimate transactions within the bitcoin economy are extremely centralized, further undermining the offer that illicit activities pervade the bitcoin economy. Said research indicated that less than 10% of anonymous free markets were responsible for 95% of illegal transactions towards bitcoin between 2013 and 2016.