Cyber law expert files PIL in HC for state regulation on Bitcoin

KOLKATA: A cyber law expert has filed a public interest litigation (PIL) in the Calcutta high court, seeking regulation by the Centre and state against crypto currencies, especially Bitcoin.

“This is a gigantic ponzi scam but our government agencies are sitting in the gallery and watching it unfold. People need to be protected and agencies that fight economic offences need to be proactive,” said Bivas Chatterjee, the cyber law expert.

Bitcoin is a decentralised virtual currency that allows monetary transaction around the world without involving any bank. The money can be used to purchase goods and services, even those that are not legal.

In his petition, Chatterjee cited examples of how Bitcoins were

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This is a gigantic ponzi scam but our govt agencies are sitting in the gallery and watching it unfold. People need to be protected and agencies that fight economic offences need to be proactive.

BIVAS CHATTERJEE, petitioner

exchanged for cash in Kolkata. The court is yet to fix a date for the hearing. The PIL filed on January 5 says a Narcotics Control Bureau of India (NCBI) report in 2015 mentioned the first instances of drug cartels using Bitcoins. The petitioner alleged that vari- ous investigating agencies are struggling to identify the money trails in crimes in which the accused used Bitcoins. “Even terrorists are suspected to be using more and more crypto-currency because they think it is difficult for law enforcement and investigating agencies to trace the money trail,” said the petitioner.

He has sought response from the RBI , Union finance ministry, SEBI, income tax department, enforcement directorate, West Bengal government and the state information, technology and electronics department. “In the absence of any statutory regulation, people are investing in crypto-currencies especially in Bitcoins with the hope that their investments will multiply manifold within a short time. If the value of crypto-currencies collapse there can be economic chaos,” the petitioner alleged.