Trading in bitcoin in India is refined method of Doing Hawala Business, Says Supreme Court

The segment of cryptocurrency has increased rapidly over the years. Bitcoin’s share in this market is more than 50 percent. However, the central government’s attitude towards cryptocurrency in India has been strict. The Supreme Court has also expressed apprehension about bitcoin. The Supreme Court has described trading in bitcoin as hawala business. Along with this, the court has also reprimanded the central government for not clarifying the situation regarding the regulation of virtual currency.

While hearing the bail plea of ​​Shailesh Babulal Bhatt, who was reportedly arrested for illegal trade of bitcoin, a bench of Justices Surya Kant and An Kotishwar Singh described trading in bitcoin as hawala business. The bench said that during the hearing of a case related to trading in bitcoin about two years ago, it had asked the government to give information about the policy related to the trading of virtual currency but he has not received any answer yet.

Senior Advocate Mukul Rohatgi, appearing for Bhat, said that after rejecting a circular of the Supreme Court’s Reserve Bank of India (RBI), trading in bitcoins in the country is not illegal and because of this his client’s arrest is wrong. Justice Surya Kant told Rohatgi that he does not know much about bitcoin personally but the court has told the government that if there is regulatory control about it then there will be no problem. Justice Surya Kant said, “I only understand that there are some real bitcoins and some forged bitcoins. Trading hawala in bitcoin in the country is like a better deal of business.”

Rohatgi said that bitcoin has a lot of value and abroad you can go to the car showroom and buy a car from just one bitcoin. He said that the value of bitcoin is about 82 lakh rupees. Rohatgi said that he himself does not understand much about this trade. Additional Solicitor General Aishwarya Bhati, appearing for the Enforcement Directorate (ED) and the Government of Gujarat, said that they want to file a detailed reply to the bail plea as it is not only about trade in bitcoins. The Supreme Court has given a period of 10 days to the state government and ED to give their reply. The next hearing of the case will be held on 19 May. Bhat has claimed that he was arrested by the police last year and he has been in custody since then.