The Supreme Court has asked the Reserve Bank of India to consider the issues raised by a PIL petitioner seeking urgent steps to restrain the sale and purchase of illegal cryptocurrencies or “Virtual Currency” (VCs) like bitcoins.
A Bench led by Chief Justice of India J.S. Khehar heard counsel Vijay Pal Dalmia that virtual currency was being traded anonymously over the Internet and used for a host of anti-national and illegal activities, from terror funding to illicit trade of arms and drugs, corruption, money laundering, tax evasion and so on.
Bitcoin is a piece of digital code which is also used by people as currency. It was started in 2009 by Satoshi Nakamoto, whose real identity is still shrouded in mystery. The maximum number of bitcoins that can be created is limited to ~21 million.
Japan has officially recognized Bitcoin and digital currencies as legal money along the lines of other fiat currencies with effect from April 1, 2017. The recognition comes after implementation of a new law amending Banking Act in Japan for legalizing these currencies. It will help in integration of digital currency into the legal banking system through regulatory scrutiny.
Source: The Hindu