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.

Travala.com's Cryptocurrency Gateway Provides Travel to 82,000 Destinations

Members of the cryptocurrency community can now book rooms in over 550,000 properties worldwide by utilizing the accommodation and hotel booking service Travala.com. The company’s crypto payment gateway accepts a myriad of cryptocurrencies so individuals and organizations can travel to 82,000 destinations and pay with their favorite digital asset.

Also read: An In-Depth Look at Ethereum’s Maker and Dai Stablecoin

Book 550,000 Property Listings With a Myriad of Digital Assets

Crypto enthusiasts have been discussing a hotel booking service called Travala.com recently which provides accommodation in a wide variety of countries and cities. Travala accepts 10 different cryptocurrencies including its native token AVA, BCH, ETH, XRP, LTC, TUSD, TRX, NAN, XRB, and BNB. The startup’s native token AVA is a protocol based on the NEO network. At the time of publication, the startup offers bookings to 567,928 properties in 210 countries which add up to roughly 82,311 travel destinations. This includes places like Paris, Rome, Bali, Hanoi, Singapore, Amsterdam, London, Lisbon, New York, Los Angeles, Montreal, and Toronto.

Travala launched in July of 2018 with the goal of providing a blockchain-powered travel system. Travala heralds itself as the crypto economy’s equivalent to Expedia because of the abundance of prominent listings the service provides. Unfortunately for crypto enthusiasts, Expedia silently dropped bitcoin core (BTC) payments last year for unknown reasons. This year, Travala started seeing increased traction. For instance, January bookings increased from last December’s numbers by 265 percent.

The startup also partnered with a leading travel firm from China, Didi Travel, in order to bolster the firm’s presence in one of the largest countries on earth. The most popular destinations in January included places like the U.S., Italy, Thailand, Spain, Singapore, Sweden, and the Philippines.

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Travala.com  @travalacom

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Travala Hopes to Have 1.5 Million Properties Listed in 2019

On Jan. 31 the company introduced fiat payments to the Travala platform which allows people to pay for bookings with Paypal, and four major credit cards. During the update, the startup said that booking descriptions were improved with a “clear breakdown of room type, meal type, price-per-night, booking price, and the total.” Travala also has a roadmap for 2019 improvements and aims to add things like discounts and loyalty rewards to the system. Additionally, Travala will be adding a referral program, integration with Gimmonix, partner with 15 wholesale suppliers, and hopes to cover 1.5 million properties by the year’s end.

Travala will be joining a few other companies that offer hotel bookings, accommodations, and flights as well. Cheapair accepts BCH, LTC, DASH, and BTC for hotels, flights, and car rentals. Bitcoin.travel is a travel agency that accepts BTC and queries a list of flights and hotels through its partners. The New York-based travel agency founded in 2013 provides customers with flight and hotel reservations using BTC as well. Users interested in flights and cruise bookings can utilize Webjet Exclusives and Cryptocribs aims to decentralize Airbnb by allowing booking payments with BCH, ETH, and BTC.

Travala wants to be known throughout the cryptocurrency ecosystem as a next-generation travel agency. “A one-stop travel booking platform combining the best of this generation’s online travel agency (OTA) functionality with the incredible benefits of next gen’s decentralized technologies and tokenized incentives,” explains the company’s website. Moreover, Travala claims that the company offers a competitive minimum average of 15% lower than current mainstream OTAs. This is due to the partnership with leading wholesale travel solution partners and a cryptocurrency-based incentivization economy.

What do you think about Travala.com’s services? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. Readers should do their own due diligence before taking any actions related to the mentioned companies, creators, associates, or any of its affiliates or services. Bitcoin.com and the author are not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Nordea Bank Faces Allegations of Laundering Russian Millions

Finnish public broadcaster YLE will air a damning program on March 4 that reveals Nordea Bank’s alleged involvement in a multi-million-dollar money laundering scheme. The program will show how dirty money, mostly from Russian criminals, passed through Nordea, the biggest lender in the Nordic region.

Also read: Startup Company Sets Up Bitcoin ATM in Botswana

YLE to Broadcast ‘Big Information Leak’ on Money Laundering

Nordic financial authorities indicated in October that they had received documents from Bill Browder’s Hermitage Capital Management alleging Nordea had breached anti-money laundering laws.

YLE has now said on its website it will broadcast a program on Monday afternoon revealing how Nordea allegedly became a conduit of hundreds of millions of euros of mostly dirty Russian money. Nordea’s chief executive officer Casper von Koskull will also participate in another YLE program covering money laundering late Monday night.

Shares of Nordea tumbled 6.5 percent on the news, as fretful investors sold off their stake in banks thought to be connected to the scandal. According to a Bloomberg report, the bank has said it “is aware of the media story and has been in dialogue” with YLE and the Danish newspaper Berlingske, which also intends to publish the laundering report later on March 4. A spokesperson for Nordea told the agency:

We have not yet seen the program or article. Based on what we have been invited to comment on, these are all issues that we have seen and commented on before and are therefore in line with previous statements made on AML issues.

Europe’s Biggest Banks Hubs for Illicit Financial Flows

The latest report, which comes at a time when Nordea’s Nordic contemporaries such as Swedbank and Danske Bank have both faced allegations relating to a money-laundering scandal in Estonia, adds weight to the theory that banks are at the forefront of fueling illicit financial flows. Although various analysts have blamed cryptocurrencies for driving money-laundering, terrorism and other crimes, due to their semi-anonymous nature, research has shown that most financial institutions in developed countries are – in one way or another – involved in money-laundering.

News.Bitcoin.com reported last mont that Switzerland’s largest bank, UBS, was fined 3.7 billion euros ($4.2 billion) for money laundering, while Denmark’s largest bank was forced to terminate its operations in Estonia following the unearthing of a $226 billion scandal. In October, anti-money laundering experts Fortytwo Data released a survey which revealed that almost all of Europe’s biggest banks have been sanctioned for money laundering offences over the past decade.

The research firm established that at least 18 of the 20 biggest banks in Europe, including five UK institutions, were slapped with various multi-million dollar fines for violations relating to money laundering. All 10 of Europe’s biggest banks, including HSBC, Barclays, BNP Paribas, Société Générale and Santander have fallen foul of anti-money laundering authorities, while recent crises at the likes of ING, Danske Bank and Deutsche Bank “only reinforce this impression, demonstrating how no bank is immune to money laundering sanctions, no matter how large,” said Fortytwo Data.

A report in the New York Times recently noted that French banking giant BNP Paribas in 2014 pleaded guilty and paid a $8.9 billion fine for processing billions of dollars’ worth of transactions for companies in countries under United States economic sanctions. Federal prosecutors said BNP Paribas had “banked on never being held to account for its criminal support of countries and entities engaged in acts of terrorism and other atrocities.”

Two years earlier, HSBC consented to a deferred prosecution settlement with the U.S. Justice Department and forfeited $1.3 billion for failing to maintain controls that would have prevented drug dealers from laundering hundreds of millions of dollars. Although cryptocurrencies, which can be used as money without the backing of any central bank, have had their share of scandals, the malfeasance they are embroiled in is minuscule compared to traditional banks.

What do you think about banks being involved in money laundering? 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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Venezuelan Government Launches Crypto Remittance Service

The government of Venezuela has begun offering a cryptocurrency remittance service. Remittances can be sent using two types of cryptocurrency. The service was launched by the Superintendency of Cryptoassets and Related Activities, the country’s main crypto regulator, which has also set a monthly limit and a commission per transaction.

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

Government’s Remittance Service

The government of Nicolas Maduro has started offering a cryptocurrency remittance service. The Superintendency of Cryptoassets and Related Activities (Sunacrip), the main regulator of all crypto activities in Venezuela, announced the launch of the service on its Patria platform last week. According to its website:

The cryptocurrencies that can be used to send [remittances] are bitcoin and litecoin.

Once the cryptocurrency transaction is confirmed, the funds will be available on the platform in sovereign bolivars, Venezuela TV reported, noting that “The system will allow the user to receive a maximum of cryptocurrency equivalent to 10 petros per month [in bolivars].” However, with specific approval by Sunacrip, the recipient can receive up to “the equivalent in euros of fifty (50) petros.”

The petro is Venezuela’s national digital currency which the Maduro government claims to be a cryptocurrency backed by oil, gold, diamond, and other natural resources. Each coin was previously worth 3,600 sovereign bolivars (Bs.s). However, President Maduro raised its rate to 9,000 Bs.s in December and againin January to 36,000 Bs.s.

Photo credit: @Joselitramirez

Using the Patria Portal

The terms and conditions page of the Venezuelan government’s remittance website states that “To be a recipient of crypto remittances, the natural person must be registered with the Patria platform, be of legal age and reside in the Bolivarian Republic of Venezuela.” Senders, however, can be outside of Venezuela.

To use the platform, the sender must enter an email address to which a code will be sent in order to log in. “The code sent is a one-time password … a new one will be sent each time that it is required to access the remittance system,” the Patria website details. Upon entering the system, the sender will be prompted to enter their first and last name, date of birth and country of residence. The sender will then be asked to enter the national identification number and date of birth of the recipient.

The next step is to select the cryptocurrency and the amount of remittance to send. At this point, the sender “will see the reference exchange rates at the time of the transaction and the type of cryptocurrencies: bitcoin and litecoin,” Agencia Venezolana de Noticias (AVN) elaborated.

Exchange Rates

The exchange rate of the cryptocurrency sent “will depend on the date and time of the transfer” which will be determined based on its value in euros shown on the Patria website, Venezuela TV described. Its value in bolivars will be determined based on the official rate published by the Central Bank of Venezuela (BCV).

Emphasizing that the recipient will receive the amount of the cryptocurrency sent based on its rate “in euros and the official exchange rate of the euro in bolivars,” the publication added:

The value of the remittance will be deducted by a commission, calculated and shown on the platform, up to a maximum of 15%.

“The minimum commission amount will be the equivalent of 0.25 euros [~$0.28] in bolivars for each transaction,” Patria’s website states, adding that the exchange rate of the cryptocurrencies “will be adjusted every ten (10) minutes or when required and will be published on the website of the platform.”

What do you think of the Venezuelan government starting its own crypto remittance service? Let us know in the comments section below.

Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither Bitcoin.com nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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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.