India One Step Closer to Cracking Down on Bitcoin With New Petition

India One Step Closer to Cracking Down on Bitcoin With New Petition

India is one step closer to regulating Bitcoin. Yesterday, November 14, the Indian Supreme Court issued a notice to the Reserve Bank of India and other government bodies in response to a plea for Bitcoin regulation filed by regulation supporter Dwaipayan Bhowmick. 

Also read: WannaCry Cyberattackers Are Dumping Their BTC Into Monero

India Moves Closer to Regulating Bitcoin

According to Indian publication Bar and Bench, Bhowmick’s petition proposes a new policy that controls the trade of bitcoin and other cryptocurrencies. In addition to the policy, Bhomwick suggested the creation of a new committee dedicated to regulating all cryptocurrency trades within India.

The petition was sent to various ministries of the government, including Law and justice, Finance, SEBI and Information Technology.

Unclear Regulations for Bitcoin Across the Globe

India isn’t the only country having a hard time figuring out what to do with Bitcoin and cryptocurrency. Inconsistent and vague regulations for cryptocurrency prevail across the globe, creating confusion as to whether or not these digital currencies are even legal.

Bitcoin does not require any third-party intermediaries — like banks — to process transactions. Consequently, governments have found it difficult to track transactions,  making them hesitant to allow their use.

So for now, cryptocurrency exists in a legal grey area — legal in some places, banned in others, with even more jurisdictions not having any laws for or against the digital currencies.

Legal or Not: Bitcoin Seems to Be Taking Over the World

In August this year, Indian finance minister Arun Jaitley highlighted the “notable growth” of the cryptocurrency market. As a result of that growth, the government formed a committee tasked with understanding digital currencies with the goal of figuring out how to approach them legally. This council includes the Ministry of Finance, Central Bank, and Department of Economic Affairs.

bitcoin priceAccording to a LiveMint report:

“The panel discussed the possibility of asking India’s central bank, the Securities and Exchange Board, the revenue department and Financial Intelligence Unit to develop infrastructure for observing transactions in virtual currencies.”

The Indian government is also working to develop a centralized digital currency that they can control completely. Other countries, such as Russia, Singapore, and Canada have disclosed similar plans to launch national cryptocurrencies sometime in the future.

Thus, even though the world’s governments can’t figure out exactly what to do with Bitcoin and other cryptocurrencies, they know the technology will lead the future of finance — and they want in.

The bitcoin price reflects that truth. At press time, recovering from a major correction, the bitcoin price surged 9.16 percent in a single day and reached $7000 and beyond. According to the Bitsonline bitcoin price widget, the digital currency stands at $7333.62.

From here, the official Bitsonline technical analysis projects the bitcoin price to reach $9000 soon, and maybe even hit an astronomical $12,000 during January 2018.

Do you think Indian Government will regulate the cryptocurrency or create their own cryptocurrency followed by Russia? Let us know in comments.


Image via Glaws

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