The Indian Supreme Court has asked the government to respond to calls to regulate bitcoin.Three justices issued a notice to the central bank, the market regulator, the tax department, and several other agencies, asking them to answer a petition on the matter, the Hindu, an Indian newspaper, reported Tuesday.
The original petition to the court expressed concern that bitcoin can be used to conduct transactions across borders without a trace, making it an attractive tool for ransomware attackers and tax cheats.
According to the petition:
"The lack of any concrete [control] mechanism pending the regulatory framework in said regard has left a lot of vacuum and which has resulted in total unaccountability and unregulated Bitcoin (crypto money) trading and transactions."
The petition goes on to state that bitcoin exchanges in India add 2,500 users per day, and that some 500,000 residents now hold bitcoin. As of 3:00 p.m. Eastern on Wednesday, the exchange rate between Indian rupees and bitcoin was more than 470,000.
As a result of its adoption, bitcoin usage may affect "the market value of other commodities," according to the petition, which pleaded with the court for an "urgent direction" for the government to intervene.
The petition noted that some countries are beginning to either regulate or ban bitcoin, citing China's crackdown on exchanges and Russia's attempts to block bitcoin websites.
India has typically adopted a "wait-and-see" stance on cryptocurrencies, discussing their role in the world's largest democracy but not taking concrete steps to regulate or prohibit them.
In April, the government formed a committee to study cryptocurrencies and propose new regulations.
Correction: An earlier headline on this article misdescribed the Indian Supreme Court's action. As correctly noted in the story, the court asked the government only to respond to a petition.
Indian flag image via Shutterstock
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https://www.businesstoday.in/current/economy-politics/bitcoin-cryptocurrency-ponzi-schemes-rbi-warning-virtaul-currency-digital-money/story/266972.html
BusinessToday.in Last Updated: December 29, 2017 | 15:22 IST
BusinessToday.in Last Updated: December 29, 2017 | 15:22 IST
Weeks after the Reserve Bank of India issued its third warning against the cryptocurrency trading, the Finance Ministry today said that virtual currencies are not legal tender and such currencies have no protection. It said the virtual currencies (VCs) including Bitcoin don't have any intrinsic value and are not backed by any kind of assets. "The price of Bitcoin and other VCs therefore is entirely a matter of mere speculation resulting in spurt and volatility in their prices," the Ministry said in a statement.
The Ministry also said that there was a real and heightened risk of investment bubble of the type seen in ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. "Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes," the statement said.
https://www.livemint.com/Money/jKmPIwhqwLQ1SBvEtDSpYO/Bitcoin-is-not-legal-tender-in-India-finance-ministry.html
Bitcoin is not legal tender in India: finance ministry
The Ministry also said that there was a real and heightened risk of investment bubble of the type seen in ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. "Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes," the statement said.
https://www.livemint.com/Money/jKmPIwhqwLQ1SBvEtDSpYO/Bitcoin-is-not-legal-tender-in-India-finance-ministry.html
Bitcoin is not legal tender in India: finance ministry
The Ministry of Finance clarified that virtual currencies are not backed by government fiat






































