Bitcoin : Illegal in India

Times of India ( 02 Jan ) carries following news :

Trading in Bitcoin, Ethereum, other crypto-currencies illegal, says Arun Jaitley

Bitcoins or such crypto-currencies are not legal tender and those indulging in such transactions are doing it at their own risk, Finance Minister Arun Jaitley said today as MPs expressed concern over trading on these platforms.

During the Question Hour in Rajya Sabha, DMK member Kanimozhi sought to know whether the government was considering regulating crypto-currencies like Bitcoin and Ethereum, as India " accounts for more than 11 per cent " of such trade globally.

Jaitley emphasised that the Centre's consistent position was that such currencies were not legal tender.

"The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to crypto-currencies to propose specific actions to be taken," he said.

While a repeated message was being given that such currencies were not legal tender, more detailed steps would be taken once the report of the committee is submitted, he said

I am fluxommed  !

If , as Shri Jaitleyji says , “ Bitcoins are not LEGAL tenders “ , then I suppose, that statement / admission,  implies that those ,

·         “ Mining “ the Bitcoins  ( same as printing of fake currency notes )

·         “ Trading “ in Bitcoins  ( determining its exchange-rate  vis-à-vis  RUPEE  ),

 are engaging in ILLEGAL activities !

An illegal activity can be defined as ,  “ breaking / violating “  SOME existing LAW

But , it seems , the Government does not know WHICH LAW has been broken  !

And if you don’t know which “ Law “ has been broken, then of course it stands to reason that you also don’t know , under what which Criminal Procedure Code , to charge the law-breakers  !  Hence  this  hesitation  ?

Never before , have I come across a case where some act is considered “ Illegal “ but no one knows which “ Law “ has been broken !

And therefore , what “ Punishment “ to demand from the Hon Judge , for the law-breaker !

After this “ Statement of Helplessness “ ( - that too in Lok Sabha ! ) , I would not be surprised if criminals can look forward to a “ REGIME of WARNING “ from the local policeman , whenever they engage in some ILLEGAL activity !

They may even carry a hard-copy of Shri Jaitleyji’s statement in their pockets , to show to the policeman !

So much for , “ CRIME  DOES  NOT  PAY  “ !

-  except in the case of sky-rocketing prices of Crypto-currencies , paying 10 % profit per day !

03  Jan  2018

www.hemenparekh.in / blogs