In his petition, Chatterjee suggested that cryptocurrencies are predominantly used for nefarious purposes and should be regulated or banned, as in China, as quickly as possible. He said:
“Use of Bitcoin was maximised post demonetisation, when cashless economy was being promoted. In India, law enforcement agencies are confused… Either the government should ban Bitcoin by declaring it illegal like China or there must be a regulatory body to control its flow.”
Anonymity a problem
According to the advocate, Bitcoin is particularly difficult to track, making it the vehicle of choice for illegal financial transactions. He said:
“Crypto currencies promise fast and anonymous fund transfers at a low cost. Such transactions are really difficult to track… crypto currencies are perfect facilitators for crime. Investigating authorities are facing hurdles while probing crimes involving crypto currencies or Bitcoins because of its anonymity.”
The statements from Chatterjee reflect a growing belief that Bitcoin and other cryptocurrencies are too volatile and anonymous for governments to keep from regulating them, with some even calling them Ponzi schemes.
However, other economies like Japan have embraced Bitcoin as the payment method of the future.