Digital Currency

Cryptocurrency Domains Have Become Hot Property

23/08/2019 by Idelto Editor

Bitcoin, cryptocurrencies, and blockchain technology have become mainstream terms and are now featured in most dictionaries. Crypto-related terms have a lot of value when they are tethered to a web domain, and these days digital currency domains are prime real estate, with some selling for up to seven figures.

Also read: How to Create Non-Fungible Assets and Collectible Tokens With Bitcoin Cash

Crypto Domains Are Being Snatched Up, Squatted and Sold for Profit

Cryptocurrencies have been around for 10 years now and the entire ecosystem is worth more than $250 billion. The many tentacles of the crypto industry have grown thanks to third-party platforms, competing blockchain projects, exchanges and brokerage services, wallets, and payment processors. Each of these projects and businesses has a unique web domain and some of the top bitcoin and blockchain websites are now worth hundreds of thousands of dollars – and even millions in a few cases.

Cryptocurrency Domains Have Become Hot Property — Websites that sell domains can also calculate the rough estimate of what a cryptocurrency domain name might be worth. The prices shown are based on data such as weekly and monthly traffic. A website owner may not sell you the domain for this price either as it may be worth much more in their eyes.

Desirable crypto domains include Blockchain.com, Bitcoin.com, Ethereum.com, Crypto.com, Btc.com, and Bitcoin.org. A rough estimate of how much one of these sites is worth can be seen by referencing a domain value calculator. However, that doesn’t mean the owner will be willing to part with the domain at that price; these tools only give a ballpark figure based on traffic scores and ratings from Alexa and Google. For example, the owner of Ethereum.com has left a message for the website’s visitors.

“Ethereum.com was registered on March 11, 2011. It has no relation to the blockchain technology, which later adopted the same name,” the website explains. “Ethereum.com is for sale for $10,000,000 USD.”

Apparently, the person who registered the Ethereum.com domain just happened upon an internet gold mine, but there are many individuals and businesses who register a domain with the intention of selling it later for a profit. Ever since web domains have been tradable, ‘domain squatting’ has been prevalent. This involves a person buying up a bunch of website names that are tied to a specific product or industry and then waiting for a more profitable time to sell them. In the crypto industry, domain squatters are prevalent and individuals and businesses of all sizes have to deal with the pressure of people snatching up the best domain names early. Because of the rising popularity of digital assets, especially after the bull run in 2017, crypto and blockchain-related websites are selling or have been sold for top dollar.

Observers Witnessed the Crypto Domain Price Peak in 2017

In 2009, the website Eth.com sold for just under $20K to a company which held it until 2013 when the subsequent owner used a Whois history privacy protection plan. Then in October 2017, the site was sold for $2 million and the website is now dedicated to ethereum mining. A few months beforehand, in April, the website Cryptobank.com was sold to Craig Ellis, the cofounder of Triangl, but the site is still undeveloped. Allegedly in 2018, Binance purchased the domain Cryptoworld.com from Mike Mann, the founder of Domainmarket.com, for $195,000. At the time, Mann told the world that he purchased the domain for only $11 back in 2011. In 2017, Globalcoin.com sold to someone from Shanghai, China for $35,516 and in January 2018, Cryptotrading.com was sold to William Thomas for $35,000.

There’s a large list of cryptocurrency-related domains for sale today for thousands of dollars on various marketplaces. This includes Bitcointransfer.co ($12,000), Coinsbio.com ($1,000), 360crypto.com ($30,000), Block-chain.com.de ($20,000), Btcwallet.club ($10,000), and Tokenpay.es ($12,000). On Twitter there are also many individuals selling cryptocurrency domains and these days it’s hard not to stumble upon some shilling their domains. One person on Twitter explains the domain name Coinistical.com is a “fantastic brandable domain that’s for sale now.” Another person writes: “The domain name Bitcazino.com is for sale — A fun take on the words ‘bitcoin’ and ‘casino.’” The account @Dotonlydomains, a business that sells dotcom website names only, is also selling the domain Realcryptocurrency.com.

Cryptocurrency-Related Website Sales Are on the Rise Again

Searching through the depths of social media and digital currency forums shows that the crypto domain real estate market is in high tempo. Search results from Namebio suggest a lot of websites associated with crypto names have been sold over the last few months. Cryptocpa.com sold for $12,000, Owncoin.com ($2,050), Cryptofocus.com ($1,155), Bitcoin.red ($4,860), Bituniverse.com ($3,156) and Coinpig.com ($1,225).

Just the other day, Runsonripple.com sold for $10,000, Bitsec.com was purchased for $4,550, and Cryptoman.com was sold by Namejet for $1,350. The average selling price for a digital currency styled domain name was around $1,057 on August 18. Between September and November 2017, domain names involving crypto could range between $2,000 to $4,000 and on October 22 average prices touched a high of $75,000. The most active website brokerage service which has sold the largest number of digital currency domains today is Go Daddy.

With the popularity of digital currencies growing, the domain names attached to this industry will follow the same path. Squatters are gambling as well because they don’t know if that specific name will be a good internet brand and one that will entice a future buyer. On the forum Namepros.com, a marketplace where people buy and trade popular domain names, one user explained that digital currency domains are following market prices.

“The overall momentum in the crypto market has changed from bearish to bullish and we can expect to see higher highs in crypto prices in the near and distant future,” the top member Judgemind detailed this April. “This switch in the market is great for domain investors, more new startups will emerge in the crypto space and blockchain technology will continue to evolve. Keywords to focus on for investment in .com, .org, .io include Bit, Btc, Bitcoin, Crypto, Coin, Chain, Block, Blockchain, Faucet, Token, and Airdrop.”

What do you think about the demand for cryptocurrency domains? Let us know what you think about this subject in the comments section below.

Disclaimer: Readers should do their own due diligence before taking any actions related to the mentioned companies, domains, domain vendors, and websites associated with this article. Bitcoin.com or the author is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services, domain products and website vendors mentioned in this article. This editorial review is for informational purposes only.

Image credits: Shutterstock, Go Daddy, Twitter, Namebio, and Pixabay.

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The Push to Kill Cash – Australia’s Proposed Ban Shows It’s Not Conspiracy Theory

23/08/2019 by Idelto Editor

The Push to Kill Paper Money - Australia's Proposed Ban Shows It's Not 'Conspiracy Theory'

The supposed coordination of governments and tech companies to create a one-world, cashless society is often viewed as little more than fodder for silly Youtube conspiracy videos. After all, cash is still king in daily life, even in extremely high-tech, innovative societies like Japan. Upon closer examination, though, current realities like Australia’s proposed cash transaction ban for 2020, the continuing removal of higher denomination bills from several world economies, and the creation of centralized, state cryptocurrencies by governments worldwide cannot be ignored. These trends signal a global push to kill paper money in the name of safety, security, and financial inclusion.

Also Read: Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

You Can Pay, But It Better Be Our Way

Australia’s “Black Economy Taskforce” wants to put people accepting over 10,000 AUD (~$6,750) in cash in the slammer for up to two years, or fine them up to 25,000 (~$16,890), in an ostensible bid to fight black market economies. The Currency (Restrictions on the Use of Cash) Bill 2019 states:

Transactions equal to, or in excess of this amount would need to be made using the electronic payment system or by cheque. The Black Economy Taskforce recommended this action to tackle tax evasion and other criminal activities.

The Push to Kill Cash – Australia's Proposed Ban Shows It's Not Conspiracy Theory — Long lines of people wait to exchange their obsolete rupee notes in India.

Note the similarity here with talking points of other governments. India’s Prime Minister, Narendra Modi, when announcing the devastating surprise removal of 86% of the country’s circulating paper cash in 2016, proclaimed:

Black money and corruption are the biggest obstacles in eradicating poverty.

Not surprisingly, Modi’s shock move put the dominantly cash-based society in a panic, forcing people to take their now worthless 1,000 and 500 rupee notes to banks within 50 days of the announcement, to exchange them for smaller denominations. Now The Royal Bank of India is moving to ban all cryptocurrencies but one, the state-approved, digital rupee.

The removal of large cash bills is a worldwide, ongoing reality, with the European Central Bank (ECB) stopping production of the 500 euro note earlier this year. The note, dubbed by the media as “the Bin Laden,” was said to be used disproportionately in financing terrorism. The U.S. used to have banknotes worth $500 and higher as well, some which were known as gold certificates, entitling the bearer to physical gold upon redemption. As fractional reserve banking took over, however, and national debt increased, these systems were progressively abandoned. The trend continues today in the form of Negative Interest Rate Policy (NIRP), and the resultant push for digitization of money.

Stop Holding Cash and Take Our Debt

“If everyone is holding cash, negative interest rates become useless.” These are the words of former People’s Bank of China (PBOC) governor Zhou Xiaochuan after the Chinese government had just completed a trial run of their new national cryptocurrency back in 2017. Now the country’s sovereign digital currency is “almost ready.” Zhou has also officially stated:

At the current stage, the central bank’s major goal of issuing digital currency is to replace the physical cash.

Earlier in the same interview, he maintained that “The cost for cash transaction will gradually increase in the later stage. For instance, banks do not charge any fee for counting a large amount of coins now, but in the future they may charge their clients for such services.” Zhou’s remarks about negative interest rates are arguably the biggest giveaway as to what is going on here. If people are holding cash outside of banks, reckless, Keynesian NIRP policies won’t have the desired effect of coercing spending in the populace.

New Zealand Reserve Bank governor Adrian Orr agrees with Zhou:

Let’s tax cash holdings, simple as that: we’re back to monetary policy as usual; people are disincentivised to be holding large lumps of physical cash; they are having to think harder about putting money to work.

Big Tech: We’ll Create the Digital Money, Thank You

While draconian government monetary policy is alarming, the lack of support for actual financial sovereignty in the crypto and tech space is indicative of another problem. Government’s designs on eliminating paper money and fighting permissionless, decentralized crypto exchange — both moves to control money supply and populations of individuals — are obvious, and to be expected. But even big tech companies and exchanges like Facebook and Binance are jumping on the propaganda bandwagon, dragging many well-meaning enthusiasts into the fight against financial freedom (even if unintentionally) right along with them.

“We believe that we all have a responsibility to help advance financial inclusion, support ethical actors, and continuously uphold the integrity of the ecosystem.” – Libra whitepaper

“This is why we believe in and are committed to a collaborative process with regulators, central banks, and lawmakers…” – Facebook’s David Marcus

“Binance is looking to create new alliances and partnerships with governments, corporations, technology companies, and other cryptocurrency companies and projects involved in the larger blockchain ecosystem, to empower developed and developing countries to spur new currencies.” – Binance’s ‘Venus’ announcement

The common theme here is eager compliance with Keynesian value destroyers. And these examples are illustrative of the true financial epidemic.

Forced ‘Perfection’

Digital currencies really are extremely convenient. Everybody in the world really should have a chance at financial inclusion. Holding wads of paper cash and coins really can be a bother, as well as a safety hazard, where crime is concerned. In Finland, passengers on state railways won’t be able to purchase tickets with cash for long-distance trips, starting in September. Much easier than messing with the paper stuff. ATMs are becoming less common worldwide, even in countries like China, the U.S., and cash-obsessed Japan. Settlements and payments can be made effortlessly, though, with just a quick scan or entering a PIN, so it’s no big deal.

But this is not a perfect world. Governments are corrupt. Artificial monopolies and seas of red tape exist, keeping the life-threateningly impoverished and entrepreneurial from accessing crypto and banking services via strict KYC and AML policy, and by mandating, like Modi in India, that their hard-earned and hard-saved money is worthless. People already have the opportunity for extreme financial inclusion. A $40 smartphone and an internet connection enables anyone, anywhere in the world, to make or receive money with Bitcoin. In the name of regulation, safety, and financial inclusion, however, the state makes the situation more chaotic, less safe, and extremely exclusive where real human need is concerned.

Some of us crazy people still like paper cash, and prefer to pay that way. Some annoying, behind-the-times luddites still put money in their mattresses, where global financial policy turns more and more toward negative rates, continued inflation, and devaluation of money sitting in banks. Some entrepreneurs and tech-savvy fans of crypto simply think it’s nobody else’s damn business, preferring paper wallets, coin shuffling, and VPNs, in a world where everyone but those in power are presumed guilty until proven innocent. Some of us “conspiracy nuts” just like crypto for crypto, and paper cash is still closer to that clean and private model than any slimy, centralized digital state currency could ever hope to be.

Do you think there is a global push to end cash? Let us know in the comments section below.

OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.

Images courtesy of Shutterstock, fair use.

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The New Bitcoin Banks Are Here

23/08/2019 by Idelto Editor

A new age of banking is imminent. Legacy models will be forced to follow suit or become obsolete in the eyes of value holders worldwide, as new bitcoin and crypto services take over, seeking to implement blockchain systems with an eye on convenience and financial inclusion. Announcements of stablecoins and exchange services from giants Binance, Coinbase, and others, signal the age of the ‘Bitcoin Bank’ is just beginning. Whether this shift brings about the immense positive change it promises, or simply becomes a new centrally regulated banking system with competing digital monies, the transition is nevertheless underway.

Also Read: The World Bank’s Blockchain Bond Is Just a Fancy Way of Selling Debt

Overview of Trends

On a global scale, a few basic trends are emerging rapidly where crypto exchanges and banking are concerned. The proliferation of crypto/fiat on and off-ramps, ever wider arrays of crypto financial services, and development of competing stablecoins are being witnessed more than ever. Major players seek to secure market capitalization in the context of security-oriented, compliance-based crypto competition which fosters financial inclusion.

Binance Announces New Stablecoin Project

On Monday, Binance announced “plans to initiate an open blockchain project, Venus, an initiative to develop localized stablecoins and digital assets pegged to fiat currencies across the globe.” The $1 billion+ daily trading volume behemoth is supporting over 150 cryptocurrencies and already actively involved in stablecoin development “including a BTC-pegged stablecoin (BTCB) and the Binance BGBP Stable Coin (BGBP) pegged to the British Pound.”

The Chinese version of the announcement stressed the need to embrace change, and for groups like itself and Libra to be developed in an “orderly manner” under regulatory guidelines. The announcement goes on to suggest three specific courses of action including government establishing the strategic position of blockchain and stablecoin enterprise in the financial sector, establishing regulatory sandbox mechanisms, and the allowance of private enterprise creation of stablecoins and cross-border payment settlement systems.

Coinbase Acquires Xapo

Another giant in the industry serving as a significant crypto on-ramp since 2012, is Coinbase, whose custody business has recently acquired crypto asset storage group Xapo’s Institutional Custody Business. In an announcement on August 16, Coinbase detailed: “Through the acquisition of Xapo’s institutional businesses, we’re now proud to act not only as the gateway for millions of people to cryptocurrency, but also as the world’s largest and most trusted steward of digital assets.”

Coinbase currently provides crypto services supporting 42 countries worldwide, with over 20 million customers globally. The group’s main service is facilitating the buying and selling of bitcoin via bank account, credit and debit card. Like Binance, Coinbase has its own stablecoin, USD coin (USDC). The overarching selling point of all of stablecoins across the industry is strikingly similar: a focus on convenience and reliability. As Coinbase claims, emphasizing financial inclusion:

Unlike regular US dollars, USD Coin doesn’t require a bank account. It doesn’t require that you live in a particular geography. And you can send USD Coin around the world at an extremely low cost in just a few minutes. This opens a lot of possibilities.

Huobi Global

Headquartered in Singapore, the Chinese exchange Huobi was forced to adapt via unorthodox means due to encroaching Chinese regulatory restraints in 2017. The exchange is currently doing a daily volume of over $1.1 billion and serves as an active hub for crypto and fiat trading, with leveraged spot trading, fiat withdrawals, and the HUSD stablecoin being key selling points. Multisig cold wallets with “24/7 security monitoring” and a “Dedicated 20,000 BTC Security Reserve Fund,” enable users to store funds. Like Binance and Coinbase, Huobi is exemplary of crypto exchanges now moving out of mere trading to offering what are basically crypto banking services to their users.

Coincheck and Bitcoin Suisse

Allowing users to earn interest via crypto lending, payment of utility bills, and business payment services, Japan’s Coincheck was acquired by mainstream Tokyo brokerage firm Monex Group in April, 2018, for $33.6 million. In the wake of a $534 million NEM heist in January, 2018, and ensuing regulatory overhaul, the exchange has once again become profitable, according to Monex. Monex Managing Director and Chairman Oki Matsumoto recently created even more of a stir when he announced that Monex had applied to join the Libra Association, expressing emphatic interest in the project. The Libra announcement solidified the growing impressions of many that a global synergy toward bitcoin banking is indeed developing more rapidly than ever across the industry.

Other major players include groups like Bitcoin Suisse, founded in 2013 and marketed by the company as “Switzerland’s oldest, regulated, professional company for crypto-financial services.” Bitcoin Suisse offers trading and brokerage, storage, collateralized lending, staking, and the Cryptofranc (XCHF) stablecoin. As an amusing aside, a recent publicity stunt brought the group even more attention, finding them conducting the “highest bitcoin trade ever publicly recorded” on the wind-whipped, snowy summit of Breithorn, Switzerland, at 4,164 meters above sea level.

Bitcoin.com

Bitcoin.com’s upcoming exchange (to launch September 2) viewed in combination with the already available non-KYC, P2P local.bitcoin.com trading platform are aiming for mass onboarding of crypto users seeking banking-type services through Exchange.bitcoin.com, while simultaneously providing a clear route for private, permissionless exchange of crypto via the P2P platform.

The exchange is set to offer features such as crypto/fiat on and off-ramps, security via “2FA, IP whitelisting, cold storage,” dozens of trading pairs against BCH, and an SLP token exchange. Bitcoin.com is conscious of financial inclusion as well, including financial sovereignty as the critical element of transaction. As the developer site states:

Money is critical to the Human Condition. Bitcoin Cash and Blockchain technology enable financial sovereignty in a way which is unique in history…As a developer you can make it [Bitcoin Cash] available to all people, whatever their age, gender, nationality or financial status.

A New Era in Banking

As the trend toward a new generation of Bitcoin Banks continues to evolve, market demand is likely to force legacy institutions to adapt or die, and inspire renewed focus industry-wide on convenience and transparency. As evidenced by cases like 87-year-old private bank Maerki Bauman in Switzerland, which has seen revived interest after hinting at crypto offerings, the new paradigm is one which is digital asset-friendly.

With major crypto service providers and exchanges taking unique roles in their offerings to the market, currency competition among stablecoins is – at least to some degree – now being encouraged. It will no doubt be evident in years to come which Bitcoin Banks are serious about financial inclusion and bringing about a true revolution in the banking industry, and the unfolding promises to be an exciting spectacle.

What are your thoughts on the new Bitcoin Banks? Let us know in the comments section below.

Images courtesy of Shutterstock, fair use.

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Indian Supreme Court Orders RBI to Answer Crypto Exchanges, New Date Set

21/08/2019 by Idelto Editor

After hearing the arguments against the banking restriction by the Reserve Bank of India (RBI) in detail, the Indian supreme court directed the central bank to reply to the representations filed by crypto exchanges. Since the RBI has not adequately answered them, the court set a new date to resume hearing the case.

Also read: Central Banks Worldwide Testing Their Own Digital Currencies

The Crypto Hearing Resumes

The Supreme Court of India resumed hearing the case against the crypto banking ban by the central bank Wednesday, after spending all day on it the previous day. Senior Advocate Shyam Divan, counsel for the central bank, continued to defend the RBI’s power to issue a banking ban. He started off by reading the disadvantages of cryptocurrency from the interministerial committee (IMC) report, Indian news platform Crypto Kanoon reported from the courtroom, elaborating:

The judge interrupts and asks how you [RBI] are concerned with consumer protection, it is not your concern. It is [the] government’s concern and not yours.

Divan explained to the court why a ban is appropriate, then discussed the IMC recommendations and various crypto warnings issued by the central bank. He reiterated the point he made yesterday that the ability for cryptocurrency to be used for cross-border payments could undermine the country’s monetary policy. The RBI counsel proceeded to discuss the use of cryptocurrency in illicit activities, noting its “anonymity.” He cited a July 2018 report by the Financial Action Task Force (FATF) and the May 2018 European Union directive.

India’s Payment and Settlement Systems Act 2007, the RBI Act and the Banking Regulation Act were examined. The counsel explained that the former gives the RBI power to issue policies to manage or operate its payment system, and regulate entities deemed a threat to it. The counsel additionally pointed out that provisions in the latter two acts empower the RBI to issue a banking ban.

The hearing resumed after a lunch break. Several past rulings were read out in favor of the RBI. After Divan concluded his arguments, the judge “asked the petitioners that RBI is an expert body which has taken decision on the basis of a study, who are we to interfere in their policy? The question is not whether it is arbitrary or not, but whether they can legislate or not when they are ‘satisfied’ under 35A” of the Banking Regulation Act, Crypto Kanoon conveyed.

Next, Advocate Ashim Sood returned to present further arguments against the RBI ban. He asserted that the central bank cannot take action based on the study conducted by others, adding that the RBI’s claim that cryptocurrencies are Ponzi schemes cannot be substantiated with data.

During the hearing, Justice Rohinton Fali Nariman directed the counsel to the representation filed with the RBI by crypto exchanges, which explains that there is no need for a ban. Sood read out some suggestions given to the central bank by exchanges such as making the Money Laundering Act applicable to them as intermediaries with necessary requirements. The judge proceeded to question why the central bank has not properly responded to the representation. “You just said that ‘we are forwarding [it] to [the] government,’” Crypto Kanoon quoted him as saying, noting that he “Angrily says this is not an answer.” The judge further expressed, “Exchanges are not asking to uplift the ban but they are only asking you to reconsider. If you don’t give [an] answer to it, I will pass the judgment.”

Justice Nariman has deferred the case for two weeks to allow the RBI to respond in an appropriate manner, which the central bank has agreed to, according to Crypto Kanoon. The court is set to “rehear the arguments on 25th September, on the reply/ reconsideration to be given by RBI to the exchanges’ representations,” the news platform described, adding that the court order states:

After hearing arguments we are of the view that detailed representations by exchanges … have not been answered point by point, therefore RBI [is] to reply [to] them within 2 weeks.

Past Three Hearings & Crypto Regulation

Before Wednesday’s hearing, the Indian supreme court partially heard the crypto case on Aug. 8, Aug. 14, and Aug. 20. On Aug. 8, the court began addressing crypto-related writ petitions, some of which challenge the banking restriction by the central bank, while others concern the country’s crypto regulation. The Indian government asked the court to postpone hearing the latter petitions since it may introduce a bill on cryptocurrency in the next session of parliament. These petitions are now scheduled to be heard in the last week of January 2020. The court then began hearing the arguments against the RBI ban in detail.

The counsel for the Internet and Mobile Association of India (IAMAI) was the first to present his arguments to invalidate the RBI circular issued in April last year to ban banks from providing services to crypto businesses. He challenged the power of the central bank over crypto at length. After the IAMAI counsel concluded his arguments, the counsel for exchanges began making his case against the RBI ban. When he was done, the counsel for the central bank started defending the RBI’s power to issue the crypto banking ban. The hearing lasted all day on Aug. 20.

There is currently no specific regulation for cryptocurrency in India. However, the government has been working on the country’s crypto policies since 2017. The aforementioned IMC was constituted on Nov. 2, 2017, to study all aspects of cryptocurrencies and provide recommendations. The committee’s report was submitted to the government in February and made public on July 22. Within the report is a draft bill to ban cryptocurrencies, which is being examined by relevant regulators, according to the finance ministry.

Do you think the RBI will change its mind and lift the banking ban? Let us know in the comments section below.

Images courtesy of Shutterstock.

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RBI Defends Its Power Over Crypto in Indian Supreme Court

20/08/2019 by Idelto Editor

The Indian supreme court heard the case against the crypto banking restriction by the Reserve Bank of India (RBI) in detail Tuesday. After many arguments challenging the RBI’s power over crypto were presented, the counsel for the central bank began making the case against cryptocurrency.

Also read: RBI’s Power Over Crypto Challenged at Length in Indian Supreme Court

Today’s Hearing

The Supreme Court of India resumed hearing the crypto case extensively on Aug. 20, after hearing it in-depth twice over the past two weeks. Advocate Ashim Sood, counsel for the Internet and Mobile Association of India (IAMAI), continued his arguments against the banking restriction by the central bank, Indian news and analysis platform Crypto Kanoon reported from the courtroom.

Sood brought up the crypto law passed in the U.S. state of Wyoming, the guidelines adopted by the state of New York, and the Howey test used by the U.S. Securities and Exchange Commission (SEC) to determine whether a token sale is a security offering, Crypto Kanoon detailed. Sood went on to discuss the crypto regulatory approaches taken by the G20 countries, as well as the guidance issued by the Financial Action Task Force (FATF) to combat the illicit use of crypto assets.

The counsel proceeded to point out that the central bank’s claim that the effect of cryptocurrency on the Indian economy is negligible is not based on any study the RBI has conducted. Several past judgments were read out to the court before the counsel concluded his arguments.

Senior Advocate Nakul Dewan then began arguing on behalf of exchanges, starting with a brief history of cryptocurrency, Crypto Kanoon conveyed. Dewan proceeded to talk about RBI’s concerns, types of cryptocurrencies, and the advantages of blockchain technology in the banking and financial sectors. He also read out some parts of the interministerial committee (IMC) report. The IMC was constituted on Nov. 2, 2017, to study all aspects of cryptocurrencies and provide recommendations.

The hearing continued after a lunch break with many more arguments against the ban, Crypto Kanoon further reported. The counsel asserted that the RBI should put crypto under a framework to ensure compliance instead of banning, noting that the central bank had recognized that the crypto industry needs to be monitored to avoid tax evasion, AML risks, and a shift to the dark web. He further argued that the money deposited in a bank belongs to the depositors, not the RBI or the bank which is only a custodian of the deposited money.

The court then heard from Senior Advocate Shyam Diwan who argued on behalf of the RBI. Noting that cryptocurrency is a means of payment, he claims that it has a direct impact on the country’s monetary and payment systems, particularly if more people continue to use it for this purpose. Further, its use for cross-border transactions is also a problem for the central bank, Crypto Kanoon conveyed. The RBI counsel read the budget speech by former Finance Minister Arun Jaitley and cited various hacking incidents worldwide including one at Indian exchange Coinsecure. Before the court adjourned, Diwan argued that bitcoin and other cryptocurrencies are Ponzi schemes, noting their price bubbles and the large consumption of electricity used in mining. The hearing will resume tomorrow.

Two Previous Hearings

Prior to Tuesday’s hearing, the Indian supreme court partially heard the crypto case on Aug. 8 and Aug. 14. On both days, Sood argued against the banking ban by the central bank, which issued a circular in April last year banning financial institutions from providing services to crypto businesses. The ban went into effect 90 days later, forcing a number of crypto businesses to shut down due to the lack of banking support.

Sood challenged the RBI’s power to exert such a ban, arguing that the aforementioned circular is not valid under statutes such as the RBI Act and the Banking Regulation Act. “RBI cannot step out of its powers as set out in [the] Banking Regulation Act. Therefore, its action against private businesses in the form of a circular is illegal,” the counsel was quoted by The Economic Times as saying.

After giving several reasons to invalidate the RBI ban, Sood began educating the judge on the basics of cryptocurrency and how major countries, including the G20 nations, regulate crypto assets. The hearing adjourned on Aug. 14 after the regulatory framework for cryptocurrency adopted by the state of New York was discussed.

Indian Crypto Regulation to Be Examined in January

As for the writ petitions concerning India’s crypto regulation, the supreme court is set to hear them at the end of January. On Aug. 8, the Indian government asked the court to postpone hearing these petitions until it has introduced a bill on cryptocurrency, which may be during the next parliament session in November and December. The court agreed and moved the hearing to the end of January 2020.

The Indian government is currently deliberating on a cryptocurrency bill submitted by the aforementioned IMC. The committee was headed by former Secretary of the Department of Economic Affairs (DEA) Subhash Chandra Garg, who was recently removed from his DEA position and appointed to the Power Ministry. He subsequently applied for voluntary retirement.

A week before Garg’s removal, the IMC report containing a draft crypto bill was made public. The bill entitled Banning of Cryptocurrency & Regulation of Official Digital Currency seeks to ban all cryptocurrencies except state-issued ones.

Following the public release of the IMC report, an increasing number of crypto industry participants have voiced their concerns regarding how flawed the report and bill are, calling for lawmakers to re-examine the IMC recommendations. The Indian crypto community, along with large trade associations such as the IAMAI and the National Association of Software and Services Companies (Nasscom), have repeatedly said that banning is not a solution.

What do you think of the Indian supreme court hearing today? Let us know in the comments section below.

Images courtesy of Shutterstock and The Financial Express.

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