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A plea to regulate the flow of Bitcoin and ensure that this virtual currency be made accountable to the exchequer on 14th November, 2017 drove the Supreme Court to seek a response from the Centre.
A bench headed by 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 (which 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).
Petitioner advocate Dwaipayan Bhowmick also sought setting up of a panel to frame a mechanism to regulate the flow of Bitcoin. Also in his plea, he stated 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 pertinent to mention herein that such trades affect the market value of other commodities inevitably.
Acting on this plea, the Supreme Court has also sought responses from the Income Tax department and the Enforcement Directorate.
A similar plea filed through advocate Pashupati Nath Razdan stated, “It is pertinent to mention that at present, the Reserve Bank of India regards crypto currencies as a violation of the country’s existing foreign exchange norms.”
Court has given a time of two weeks to the parties to file their response.
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