Indian Supreme Court Advocate Says Cryptocurrencies Cannot Be Regulated

A supreme court advocate has explained the limitations of the Indian government’s power to regulate cryptocurrency, determining that the court should not get involved. Meanwhile, the crypto community awaits the government’s regulatory framework and the supreme court hearing of the petitions against the banking ban by the central bank.

Also read: SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval

Cryptocurrencies Cannot Be Regulated

Lawyer Abraham C. Mathews describes himself as “a supreme court advocate and a chartered accountant” who practices “in the supreme court as well as the high court and some of the tribunals in Delhi.” He authored an article published in Money Control on Monday voicing his opinion on cryptocurrencies and the Indian government’s efforts to regulate them. According to him:

Cryptocurrencies by their very nature cannot be regulated … The supreme court should resist the urge to get involved.

“There is simply no denying the fact that cryptocurrencies have not gained the widespread usage their early proponents predicted, with usage as currency still restricted to a few pockets of enthusiasts,” he wrote. While praising blockchain technology, believing that it “has taken off,” he claims that “the revolution called cryptocurrency has all but failed.”

The advocate explained his position by stating that crypto regulation simply cannot be enforced due to the “alarmingly low” probability “of the coins being recovered or the perpetrators being discovered” when an exchange is hacked. He emphasized that “Nothing that the government introduces or requires can change this fact.”

He proceeded to talk about how the Reserve Bank of India (RBI) “has so far … barred banks from transacting with entities that deal with cryptocurrencies,” elaborating:

This is, unfortunately as far as the central bank can go. You cannot regulate … something that you do not have some semblance of control over.

He further asserted: “This is not to say that cryptocurrencies must be declared illegal. It must be treated for what it is: a shiny new toy. Let them play with it. However, giving it statutory or regulatory legitimacy is not just imprudent, it is foolhardy.”

Community Wants Positive Regulation

Meanwhile, industry participants are calling for positive crypto regulation. A social media campaign initiated by the CEO of crypto exchange Wazirx, Nischal Shetty, has entered its 124th day. “Every day there are 100s of retweets and likes and thousands of views,” he previously told news.Bitcoin.com.

In February, a number of Indian policymakers gathered at a blockchain summit. Among topics of discussion was crypto regulation. At the conclusion of the event, participants agreed that “The regulation is planned to be implemented by end of financial tenure,” according to the post-event announcement.

A number of proposals for the country’s regulatory framework for cryptocurrencies have been submitted to the government. In January, the Ministry of Finance invited reputed law firm Nishith Desai Associates to present their proposals. Last month, the Indian National Association of Software and Services Companies (Nasscom) published a report that calls for crypto regulatory certainty.

Last week, the supreme court gave the government four weeks to come up with the crypto regulation. The government told the court at the time that its committee tasked with drafting the regulation is in final stages of deliberations.

What do you think of Mathews’ view on crypto and regulation? Let us know in the comments section below.

Bahrain Courts Indian Crypto Businesses in Collaboration With Government

The Bahrain Economic Development Board is inviting Indian firms to take advantage of the opportunities its country has to offer including for crypto businesses. The board has been collaborating with the Indian government on a number of issues. The Central Bank of Bahrain recently published its final rules on crypto assets.

Also read: SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval

Indian Companies Invited to Bahrain

The Bahrain Economic Development Board (EDB) has invited Indian companies to set up base in its country by providing “a plethora of opportunities to Indian fintech firms for open banking, blockchain, crypto assets, robo advisory and remittances,” The Economic Times reported Sunday.

As the public agency responsible for attracting investment into Bahrain, the EDB has been collaborating with the Indian government on a number of business areas as well as improving the conditions of Indian workers in the Gulf state, the publication detailed. The EDB has established offices in New Delhi and Mumbai. Noting that India is a key market for his country, EDB Senior Manager Dalal Buhejji said that the board held a roadshow in Mumbai to attract fintech companies in December last year. EDB Managing Director Simon Galpin was quoted as saying:

We are very keen to tap into not only the early stage startups that are coming out of leading Indian cities, but also scale-ups. Bahrain is a great test market for companies which want to diversify outside of India.

Bahrain’s Crypto Regulation

The Central Bank of Bahrain (CBB) announced on Feb. 25 that it had issued the “final rules on a range of activities relevant to crypto-assets,” Trade Arabia reported, elaborating:

The CBB crypto-asset rules deal with the rules for licensing, governance, minimum capital, control environment, risk management, AML/CFT, standards of business conduct, avoidance of conflicts of interest, reporting, and cyber security for crypto-asset services.

Moreover, the publication detailed that the rules “also cover supervision and enforcement standards including those provided by a platform operator as a principal, agent, portfolio manager, adviser and as a custodian within or from Bahrain.” Companies licensed by the central bank including crypto exchanges will also need to follow “rules relevant to order matching, pre and post-trade transparency, measures to avoid market manipulation and market abuse, and conflicts of interest.”

Benefits to Maharashtra and Indian Companies

The EDB explained that there are many benefits for companies moving to Bahrain such as “a simplified licensing process for foreign corporation, taxation incentives, a welcoming environment and unlimited access to Gulf and Middle Eastern markets,” Outlook India wrote. The board added that “It is also looking to create enabling ecosystem for startups, including viable financing options,” the news outlet conveyed.

In December last year, the government of the Indian state of Maharashtra signed a memorandum of understanding with the EDB to provide a cooperative framework to promote the fintech sector in both countries. Under the agreement, the two governments will “collaborate in encouraging delegation visits, fintech educational programs, and cooperation between startups, financial institutions, government agencies, and universities,” Startup Bahrain described.

Maharashtra is home to some of India’s best cities for crypto jobs. Recent data from job listing site Indeed shows that Pune, the second largest city in the state, ranks second for the number of crypto jobs, behind only Bengaluru. Mumbai, the largest city in the state, ranks seventh this year. The Hindu Business Line reported in November that “India and Bahrain have a longstanding economic and trade relationship,” noting that “A large number of Indian businesses have already established operations in Bahrain.”

What do you think of the Indian government collaborating with Bahrain? Do you think Indian crypto businesses should set up base in Bahrain? Let us know in the comments section below.

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#Indian Crypto with Bahrain

#Crypto in Government

Bitcoin Early Adopters Build Seasteading Home off the Coast of Thailand

Interest in cryptocurrency is often interlinked with a passion for personal freedom and a desire to shape the future for the better. A recent example of this is a team of Bitcoin early adopters who are building a seasteading home off the coast of Thailand.

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Private Seasteading for $150,000

A short video documentary released by the Seasteading Institute on its Youtube channel showcases the establishment of a small seastead 12 nautical miles off the coast of Phuket, Thailand. The installation is now the home of Chad Elwartowski and Nadia Summergirl, a couple who wanted to move the futuristic idea from just a concept to a practical reality.

The people behind the project were Bitcoin early adopters who used the profit from that investment to fund their dwelling. They spent around $150,000 on the seastead, $30,000 more than they expected. “As it is experimental we ended up adding and adding and adding,” Elwartowski told Reason’s Brian Doherty.

According to the blog of the seastead construction team, Ocean Builders, $150,000 is the target minimum price for a barebones facility. “Closer to $200,000 would likely give you a move-in ready seastead with a nice kitchen, water, solar electric, etc.”

From French Polynesia to Thailand

Seasteading, a combination of the words sea and homesteading, is the idea of creating permanent habitats at sea, beyond the territorial control of existing governments. Promoters hope that one day large autonomous seasteading cities may be recognized as sovereign states in their own right and provide a platform for experimenting with new forms of governance to ensure citizens’ liberty.

Back in May 2018 it was reported that a seasteading project had reached a memorandum of understanding with French Polynesia with the aim of creating an independent island with its own cryptocurrency. Elwartowski and Summergirl had been waiting to build their seastead as part of that venture, but when progress there stopped they decided to go it alone in Thailand. They have no agreements with the Thai government but don’t anticipate any friction from authorities.

What do you think about this seasteading home built by early Bitcoin adopters? Share your thoughts in the comments section below.

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#bitcoin in thailand
#project crypto thailand

Indian Government Confirms Cryptocurrency Regulation in Final Stages

The government of India has told the country’s supreme court that the committee tasked with drafting crypto regulation is in the final stages of deliberations. The court plans to hear the petitions against the banking ban by the central bank after the government produces crypto regulation.

Also read: Indian Supreme Court Gives Government 4 Weeks to Produce Crypto Regulation

Crypto Regulation in Final Stages

The Indian supreme court briefly heard the crypto case on Monday. Lawyer Jaideep Reddy of Nishith Desai Associates was at the court representing the Internet and Mobile Association of India (IAMAI) in its writ petition against the crypto banking ban by the central bank, the Reserve Bank of India (RBI). He told news.Bitcoin.com on Friday that “The matter was heard for a very short period of time,” elaborating:

The matter started with the counsel for the Union of India stating that its committee is in the final stages of deliberations and that the matter should be heard after that.

After hearing the government’s counsel, “The court reacted by saying that 4 weeks’ time would be given and stated to the said counsel that this was the last chance that time would be given for the same,” Reddy detailed.

The court order from Monday’s hearing states that “Upon hearing the counsel the court made the following order … Four weeks time is granted, as a last opportunity, to the Union of India to do the needful.” The crypto case will be listed for hearing after four weeks.

Fighting the RBI Ban

Responding to the court’s decision, “the petitioner exchanges’ counsel responded that the matter concerns the challenge to the RBI circular, which is an altogether separate issue from the committee report, and that as the court said last time, the validity of the RBI circular should be heard and decided independently,” Reddy explained to news.Bitcoin.com. He added:

The counsel also mentioned that with each passing day, employee livelihoods are being lost.

Nonetheless, he said “the court deemed it fit to hear the matter only after 4 weeks.” India’s central bank issued a circular in April last year banning banks from providing services to crypto businesses. The ban went into effect in July and all local crypto exchanges subsequently stopped allowing customers to withdraw fiat through bank accounts.

Zebpay, one of the largest crypto exchanges in the country, shut down its Indian exchange activities altogether due to the banking restriction. Some crypto exchanges have found creative solutions to combat the banking problem such as by launching exchange-escrowed peer-to-peer services which they claim to have grown much in popularity.

Do you think the Indian government will come up with positive regulation for cryptocurrency? Do you think the supreme court will lift the RBI ban? Let us know in the comments section below.

P2P Markets Report: Iranian Localbitcoins Volume Gains 190% in a Week

The peer-to-peer (P2P) markets have seen a dramatic increase in Iranian and Indonesian trade activity, with both markets posting triple-digit volume gains in recent weeks. Localbitcoins volume has also surged in select Latin American markets this past week, with the Dominican Republic, Colombia, and Venezuela posting some of their strongest trade on record.

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Iranian P2P Trade Volume Up 190% in a Week

During the week of Feb. 23, Localbitcoins trade between Iranian rial (IRR) and BTC nearly tripled. Nearly 34.56 billion IRR (approximately $137,000) changed hands during the seven-day period, comprising the eighth strongest week on record when measured against fiat currency.

When measured in crypto, the week comprised the ninth strongest in the market’s history, with roughly 67 BTC changing hands, a nearly 150% gain over the previous week’s 27 BTC.

Indonesian P2P Trade Activity Gains Over 2,000% in 2 Weeks

Localbitcoins trade between Indonesian rupiah (IDR) and BTC has surged in recent weeks, with the week of Feb. 23 comprising the second strongest on record, with 130 BTC or 6.5 billion IDR of trade taking place.

The week follows a fortnight of unusually strong volume for the Indonesian P2P markets, with a record 262 BTC worth of trade taking place during the week of Feb. 16, comprising a 150% gain over the previous seven days. The then all-time high of 102 BTC posted for the week of Feb. 9 had comprised a more than 920% gain over the week of Feb. 2.

South American Localbitcoins Markets Rally

The Latin American P2P markets have also seen significant action this past week, with trade between the Dominican peso (DOP) and BTC posting its second strongest week on record when measured in cryptocurrency, with 34 BTC changing hands. This past week also comprised the seventh strongest on record when measured in fiat currency with nearly 6.64 million DOP (roughly $131,000) worth of trade.

Venezuela posted a new record for weekly Localbitcoins trade when measured in fiat currency, with 24.42 billion Venezuelan bolivares (VES) in trade activity. The week also comprised the fourth strongest on record when measured in cryptocurrency, with approximately 1,960 BTC having been traded.

Colombia posted its third strongest week on record when measured in both fiat currency and cryptocurrency, with 707 BTC or 7.9 billion Colombian peso (COP) changing hands in seven days.

Do you think the P2P markets will continue to produce strength throughout March? Share your thoughts in the comments section below!

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#bitcoin in iranian
#bitcoin future
#iranian bitcoin market

Cryptocurrency Accounts for Less Than 2% of All Japanese Money Laundering Cases

Money laundering cases related to cryptocurrencies in Japan have increased significantly in 2018. Nevertheless, their number remains a fraction of the total. According to the Japanese press, the majority of reported money laundering instances actually involve banks and other traditional financial institutions.

Also read: Platform for Crypto Payments to Bank Accounts Launching in the UK

Most Instances Involve Banks and Credit Card Companies

The number of cases of suspected money laundering linked to cryptocurrencies reported in Japan surpassed 7,000 last year, the Japan Times reported, quoting the National Police Agency. The figure represents a 10-fold increase in comparison with the 669 cases registered between April and December of 2017, when crypto exchange operators were obliged to report suspicious transactions that may be linked to the movement of illicit funds.

The Japanese police detailed that in some of the cases, users with different names and birth dates have been sharing the same identification document. Others have been found to log in from foreign jurisdictions, despite providing Japanese addresses in their accounts.

In 2018 alone, 417,465 cases of suspected money laundering and other abuses were reported to the law enforcement agencies in Japan. That’s over 17,000 more cases than the previous year.

It should be noted, however, that the majority of these cases involve banks and other financial institutions, comprising 346,014 reports, and credit card companies 15,114. That means the cases related to cryptocurrencies, the exact number of which is 7,096, are less than 1.7 percent of the total.

Japanese Police to Train Data Analysis Specialists

The National Police Agency of Japan plans to take steps in response to the rising number of suspicious transactions. One of the initiatives involves the training of specialists in financial data analysis. Artificial intelligence technology may be employed to detect illegal trades. These systems can be taught to recognize patterns related to money laundering and other illicit transactions.

The Japan Times points out that the country has also seen some large cryptocurrency heists in recent years. These include the Mt. Gox hack in 2014 when $433 million worth of cryptocurrency was stolen from the digital asset exchange. Another attack, against the Japanese exchange Coincheck last January, led to the loss of approximately $550 million of the cryptocurrency nem.

Cases such as these were the main reason for a decision by the Japan’s Financial Services Agency to order several crypto trading platforms based in the country to improve their internal controls. The regulator also asked for the introduction of preventive measures against money laundering.

What do you think about the data released by the Japanese police? Share your thoughts on the topic of money laundering and cryptocurrency in the comments section below.

Cryptocurrency Jobs Peak in These Indian Cities

Demand for skilled professionals in the crypto space has been steadily rising, according to new data that ranks cities in India based on the number of jobs in the cryptocurrency field. Some cities such as Mumbai dropped several places from last year’s ranking while a couple of others are new to the list.

Also read: Indian Supreme Court Gives Government 4 Weeks to Produce Crypto Regulation

Hottest Cities for Crypto Jobs

According to new data from job listing site Indeed, Bengaluru is the number one city in India for crypto jobs, followed by Pune, the second largest city in the Indian state of Maharashtra. Mumbai dropped from the second hottest place for crypto jobs last year to the seventh place this year. Money Control elaborated:

Bengaluru maintained the lead as the city with the most jobs in the cryptocurrency field … Pune is followed by Hyderabad, Noida and Gurgaon, making up the top five destinations for crypto-careers in India.

Two cities which were not on the previous list made the top ten list this year: Ahmedabad and Thiruvananthapuram. “While northern markets see consistent demand, the numbers still do not compare to their southern counterparts,” the news outlet noted. Bengaluru is home to Unocoin, a major cryptocurrency exchange in India.

“Given the enormous scope of blockchain technology, crypto careers offer newer avenues to explore, provided one has the requisite skills,” explained the director of Indeed India, Venkata Machavarapu. “Demand for such skilled professionals has been steadily on the rise, as observed in 2018, with technology hubs such as Bengaluru and Hyderabad continuing to create the maximum number of opportunities.”

Uncertain Crypto Regulatory Environment

The Indian government is actively working on cryptocurrency regulation. The country’s supreme court on Monday gave the government four weeks to come up with a clear legal framework for cryptocurrencies. The court will then hear the petitions against the crypto banking ban by the central bank, the Reserve Bank of India (RBI), as well as other crypto-related petitions.

The central bank issued a circular in April last year, banning all financial institutions under its control from providing services to crypto businesses, effective three months later. Since then, a number of crypto businesses have been hampered. Zebpay, formerly one of the largest crypto exchanges in the country, had to close down its local crypto exchange activities due to the banking restriction. Other exchanges have come up with creative solutions such as offering exchange-escrowed peer-to-peer (P2P) services.

The government committee headed by Subhash Chandra Garg, Secretary of Economic Affairs, is in charge of drafting the regulation. Recommendations are reportedly being finalized. In January, the Ministry of Finance invited law firm Nishith Desai Associates to present their suggestions for the crypto regulation. Last week, Indian policymakers gathered at a blockchain summit and agreed on the importance of establishing a legal framework for cryptocurrencies.

What do you think of these top cities for crypto jobs in India? Let us know in the comments section below.

Bank of Korea Poll: 40% of Young Adults Enthusiastic About Cryptocurrency

The Korean central bank has released the results of its nationwide poll which includes information about cryptocurrency acceptance. Among 25,011 poll participants, 40% of young adults are eager to possess cryptocurrencies, according to local media.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Korean Central Bank’s Crypto Poll

The Bank of Korea (BOK) announced the results of its poll on the means of payment on Tuesday. It was conducted on 25,011 adults aged 19 and older nationwide from September to November of last year, Yonhap reported.

“40% of young adults [are] eager to possess cryptocurrencies,” the Korea Times conveyed the poll results. “South Koreans who are in their 20s and 30s are familiar with cryptocurrencies and willing to invest in them amid the recent craze for the new type of digital money,” the publication added, elaborating:

Some 21.6 percent of 2,511 respondents said they are conscious of cryptocurrencies, with the number soaring to 29.4 percent and 40.3 percent among 20-somethings and 30-somethings, respectively…24.2 percent of those in their 20s are eager to invest in cryptocurrencies, while 20.1 percent of people in their 30s are also enthusiastic.

The Korean central bank found that the higher the income level, the higher the awareness of cryptocurrency. However, low-income earners with less than 20 million won (~USD$18,600) in annual income want to invest in cryptocurrencies the most.

Meanwhile, only 5.2 percent of respondents actually hold cryptocurrencies, with those in their 30s holding the most, followed by those in their 20s, at 9.4 percent and 6.2 percent respectively. The main reason for holding is for investment purposes, said 86.7 percent of respondents. In terms of their willingness to hold crypto, 24.2 percent of those polled in their 20s are willing compared to 20.1 percent for those in their 30s.

“Only 5.7 percent of those in their 60s and 2.2 percent of people aged over 70 said they have heard of digital currencies,” the news outlet detailed. “Seniors are also in favor of the new currencies, with 6.8 percent and 8.3 percent of those in their 60s and 70s saying so, respectively.”

Bank of Korea’s Stance on Cryptocurrency

The Bank of Korea has repeatedly stated that it does not recognize cryptocurrency as money. The bank’s governor Lee Ju-yeol said last week at the National Assembly Finance Committee meeting, as reported by Seoulfn:

I think virtual currency is too far away to have a monetary nature…If you look at it, I think it is right to see it as an asset or a commodity.

Citing the recent G20 meeting, the governor added, “We have agreed that central banks will conduct research and monitoring on virtual currency, and Korea will take the same position.”

South Korea is home to some of the largest cryptocurrency exchanges. The Kakao-backed exchange Upbit and its older rival Bithumb are the world’s fifth and sixth largest cryptocurrency exchanges at the time of this writing. Their 24-hour trading volumes are $952 million and $582 million respectively.

What do you think of the Bank of Korea’s poll? Let us know in the comments section below.

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Images courtesy of Shutterstock and the Bank of Korea.

Source : bitcoin.com