The Supreme Court of India has submitted notices to several government ministries, seeking a response to a petition that calls for Bitcoin regulation. The notices were sent to three ministries – Finance, Law and Justice, and Information Technology – as well as to the nation’s central bank (RBI) and market regulator (SEBI). That petition cites Bitcoin’s perceived anonymity and lack of accountability, and references regulatory actions that have been taken by other countries around the globe.
In calling for India’s government to exercise regulatory control over the digital currency, the petitioner notes 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 (crypto money) subject to government regulation and accountable to exchequer but no such mechanism exists in India till date. “
The petition asserts that foreign buyers can purchase Bitcoin using funds that are “completely untraceable” and use their cryptocurrency accounts to engage in unaccountable trading and other activities. It also complains that those trades will inevitably impact the value of various commodities.
After noting that there is no current regulatory body charged with overseeing cryptocurrency activities, the petition asks the court to direct government ministries to begin regulation of Bitcoin and ensure that various committees are formed to create a proper framework for that regulation.