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Bitcoin [BTC] and cryptocurrency regulation in India: lawyers invited by Indian government




Bitcoin [BTC] and cryptocurrency regulation in India: lawyers invited by Indian government
Source: Pixabay

There seems to be a beacon of hope for the Indian crypto space which was in a quandary phase for quite a long time. According to the latest development, the Indian government has called upon lawyers of the firm Nishith Desai Associates to put forward suggestions for accommodating for Bitcoin and cryptocurrency regulations in India.

This move comes shortly after the lawyers representing Internet and Mobile Association of India [IAMAI] filed an appeal to the Supreme Court against the circular by the Reserve Bank of India [RBI] that called for a ban on all kinds of financial dealings and involvement with the digital asset.

The document was put forward by three lawyers of the firm constituting recommendations for structuring the cryptocurrency regulations. Lawyer Jaideep Reddy, representing IAMAI, and one of the writers of the framework that proposed regulations, to a news outlet, said:

“Our submission was responded to by the Finance Ministry which was kind enough to invite us to present our suggestions. The presentation mainly consisted of us explaining the suggestions made in the paper. They listened to our proposals with interest.”

Referring history to be the greatest teacher, the submitted document has urged to establish proper regulations and not imposing a ban on the new technology. The paper stated:

“An outright ban on crypto-asset activity should not be considered for several reasons.”

Some of the suggestions in the paper to regulate the digital asset’s activity included- incorporating new rules under the existing laws, categorizing digital currency into three types due to their uniqueness in nature – Payment tokens, Security tokens [regulated by SEBI] and Utility tokens.

The paper also emphasized introducing know your customer [KYC] and anti-money laundering [AML] regimes. It stated:

“Trading activity with regard to all other crypto-assets falls in something of a regulatory vacuum, although existing laws like the Consumer Protection Act continue to apply to a significant extent.”

This crucial development emerged at a time after the Indian government responded to an RTI filed by a news outlet on December 13, 2018, seeking the legal state of Bitcoin and other cryptocurrencies, wherein the Ministry of Finance answered a few questions in a Lok Sabha session stating that the government is in its final stages of drafting the regulations.

Arun Jaitley, Minister of Finance and Corporate Affairs stated that the government will not recognize the digital asset as a legitimate tender, almost a year ago. The panel that was set up in 2017, has failed to come up with any clarity and has continuously delayed in suggesting a mechanism in dealing and trading with cryptocurrency for a great deal of time.

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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.


Bitcoin continues to scale new heights after Wasabi Wallet records first ever 100-person CoinJoin





Bitcoin [BTC] rises in the market as cryptocurrency continues to mark new milestones
Source: Unsplash

Bitcoin [BTC], the largest cryptocurrency in the market, has successfully breached the $9000 mark, boosting the market sentiment. Notably, the digital currency was not the only coin to rise in the market as other coins such as Ethereum [ETH] also registered a significant rise in the market.

According to CoinMarketCap, at press time, Bitcoin was trading at $9181, with a market cap of $163.101 billion. The 24 hour trading volume of the cryptocurrency was recorded to be nearly $22.778 billion, with the coin recording a significant rise of over 17 percent in the past week.

Keeping the price surge aside, the coin has constantly been in the headlines with news pertaining to its development and new milestones. The coin was placed in the limelight of the cryptocurrency space after report by researchers at the Technical University of Munich [TUM]  claimed that Bitcoin’s carbon footprint was between 22 and 22.9 megatonnes/year, almost the same as that of Vienna or Las Vegas.

Further, the coin recently marked a new milestone after Bitcoin surpassed a million daily active addresses, with the last record on the same dating back to November 2017. Weiss Ratings heralded the same, tweeting,

“Bitcoin passed an interesting milestone – there are now over a million daily active addresses – an important metric that shows actual, unique transfers separate from the various direct transfers to and from bigger exchanges.”

Additionally, the coin was in the news again after Wasabi Wallet, an open-source non-custodial Bitcoin wallet, completed the first ever 100 participants CoinJoin, the largest CoinJoin transaction in terms of participants. Aviv Milner reported the same on Twitter,

“Huge Congratulations – @wasabiwallet just did the first ever 100 person CoinJoin, likely the largest in Bitcoin History. (link) A monumental achievement in Bitcoin privacy. Credit to the team @lontivero @molnardavid84 @nopara73 @dwuk86 @NicolasDorier and others!”

Days after this achievement, a Redditor highlighted that the largest CoinJoin transactions, in terms of inputs, was completed on June 17, 2019, with a total of 125 inputs. Golden Wiki describes CoinJoin as,

“A digital currency platform that enables multiple users to combine all inputs and outputs from different transactions into a single transaction. Privacy is achieved in a way that when a transaction is broadcast, it will not be possible to determine which Bitcoins went where.”

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