[2017-04-06]‘Bitcoin Should be Declared Illegal’ Demands Indian Politician

[zhangswujip]

An Indian politician who has previously raised his concerns on the growth of bitcoin in the country has, once again, urged the Indian government to weigh in on the cryptocurrency’s legality. More pointedly, the bitcoin critic is urging the Indian government to deem the cryptocurrency illegal.

Kirit Somaiya, a member of the Indian Parliament who belongs to the BJP, India’s conservative ruling party at the center, questioned if bitcoin is a ‘pyramid ponzi scheme’ during a session of the Indian parliament on March 24. At the time, the politician cited unnamed experts to base his concerns of the world’s largest cryptocurrency – now a legal method of payment in Japan – being a pyramid scheme and called for Indian financial authorities to regulate bitcoin.

In response, the Union Minister of State if Finance revealed a written reply to Somaiya, one that triggered much of the Indian media to falsely report that bitcoin was deemed illegal by the government.

A local report has since surfaced pointing to the formation of an ‘inter-ministerial’ committee installed by the Indian Parliament to study the legality of the popular cryptocurrency. It is speculated that the committee is tasked to give an initial announcement about its findings on April 20.

However, not content with these developments, Somaiya has once again raised his issue with bitcoin in India in the parliament on Wednesday afternoon. The bitcoin critic spoke during the ‘zero hour’, a session that starts at 12 noon wherein members of parliament are allowed to raise important subjects in the house.

In the Lok Sabha (the Lower house of the Indian parliament) session today, Somaiya opined that bitcoin was growing ‘without any restrictions’ in the “name of blockchain” technology. Unlike earlier, however, the politician has matter-of-factly stated that bitcoin is ‘illegal’ as a parallel currency. He then urged the government to ban bitcoin immediately, before drafting regulations for the industry.

Today again I raised Bitcoin issue in Parliament in zero hour It's illegal & unregulated in India Urged Govt for early action @BJP4India pic.twitter.com/zSpV5T9x5w

— Kirit Somaiya (@KiritSomaiya) April 5, 2017

Somaiya’s translated statements read:

Bitcoin trading worth ₹2000 crores (approx. $300 million, a day) has been initiated. This can also be used in underworld trading. Last week some students were caught dealing with drugs and LSD. In the name of block chain and crypto currency these kind of schemes are growing without any restrictions. The government has made a committee to address this. I urge them to declare this parallel currency illegal, and make rules and regulation to deal with it as soon as possible.

As it stands, the bitcoin industry remains unregulated in India with the Indian central bank issuing a public notice stating bitcoin companies in India were not recognized or approved by the authority. The notice, a rehash from December 2013, has spurred the Indian bitcoin industry to establish its own self-regulatory body and watchdog in February, one that approached Indian authorities but has yet to receive a response.

The Indian bitcoin industry has also launched a petition urging Indian lawmakers to declare the legality of bitcoin. Launched last week, the petition now sees over 10,000 signatures.
link:https://www.cryptocoinsnews.com/bitcoin-declared-illegal-demands-indian-politician/

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[Qartada]

Half of this guy's Twitter is about Bitcoin.  He really, really hates Bitcoin.  I think he's an idiot though, because making it illegal will only prevent people doing legal things with it from using it.

If people are doing things that are already illegal with Bitcoin (buying drugs, for example), then they should be tried for that (I don't think it should be illegal but they should be tried for what they did, not the currency they used).  What they used to pay for the drugs is irrelevant - they could equally give the recipient Monero (or just cash, like a lot of drug trading still involves) and they would still be buying drugs.

The point is that if people are using Bitcoin and they're getting caught using it, it's not anonymous and therefore its use in illegal activities is equal to fiat - so his logic here creates a paradox of anonymity and legality.

[Carlton Banks]

"Politicians declared authoritarian and immoral" says Bitcoiner (me)

[darkangel11]

"Politicians declared authoritarian and immoral" says Bitcoiner (me)

Good one, somebody should openly point out that he's clueless. I hope there are such smart people in the Indian Parliament.

Kirit Somaiya, a member of the Indian Parliament who belongs to the BJP, India’s conservative ruling party at the center, questioned if bitcoin is a ‘pyramid ponzi scheme’ during a session of the Indian parliament

A large group of cryptocurrency forum members questioned the sanity of an Indian politician and expressed concern about his lack of knowledge and understanding of the subject.
Someone should mail it to him as a response.

[veleten]

must be true if an Indian politician said so 
it is common knowledge that politicians don't give a damn about the subject they are talking about
but this dude is clearly head and shoulders ahead-calling bitcoin a ponzi pyramide scheme
do some research before you make a fool of yourself

[1Referee]

calling bitcoin a ponzi pyramide scheme

That's what a lot non Bitcoiners are doing - they place Bitcoin exactly into that category. I know a few people around me that think exactly like that, and no matter how hard you try to explain them the benefits of Bitcoin, for them it's already clear and nothing can change their point of view - Bitcoin is and will remain a ponzi scheme.

do some research before you make a fool of yourself

In most cases they think they have done so, but the opposite is true. People taking such stance are just showing their high level of ignorance, and nothing more. It's almost embarrasing.

[Kemarit]

must be true if an Indian politician said so 
it is common knowledge that politicians don't give a damn about the subject they are talking about
but this dude is clearly head and shoulders ahead-calling bitcoin a ponzi pyramide scheme
do some research before you make a fool of yourself

And just like any other politicians, this dude is just riding on the popularity of bitcoin. He doesn't know anything about bitcoin. He needs to research more before calling it a ponzi or pyramiding scheme.

At the time, the politician cited unnamed experts to base his concerns of the world’s largest cryptocurrency – now a legal method of payment in Japan – being a pyramid scheme and called for Indian financial authorities to regulate bitcoin.

Why don't he named his so called experts? Maybe his so called experts has used bitcoin in the past as well in ponzi scheme. LOL.   They should follow what Japan did. I think Indians will surely find a way to used or trade bitcoin in the market.

[spoon-bender]

I agree that bitcoin is a ponzi.  However, it compares favorably to two other ponzis that come in the form of the 500 and 1000 rupee bank notes: https://www.theguardian.com/world/2016/nov/10/rupee-note-cancellation-panic-in-india-banks-500-1000

Indian politicians have in the recent past demonstrated the ability and willingness to abdicate their own debt obligations making ownership of Indian currency a very risky proposition indeed.  It is no surprise they would attempt to censor any alternatives.