Indian Parliament Member Answers Reporter's Questions (Part 2): Bitcoin in India Should be Regulated by the Reserve Bank of India

Golden Finance News - Recently, media from all over the world have been paying attention to the development of Bitcoin in India, among which the focus on Indian parliament member Kirit Somaiya is the most popular, because for the majority of Bitcoin supporters, the position of this Indian politician is very discordant.

Indian parliament member Kirit Somaiya believes that Bitcoin in India should be regulated by the Reserve Bank of India. Image source: Golden Finance

Kirit Somaiya, a member of the Indian Parliament, has always insisted that Bitcoin is illegal in India because it lacks appropriate regulation. He advocated that the Indian government should make Bitcoin illegal as soon as possible and then announce it to the public.

Recently, a foreign media interviewed Kirit Somaiya, who has suddenly become the focus of the world. Let's take a look at how Somaiya explained his views. In the last episode, we talked about why he thinks Bitcoin is illegal in India. In this episode, let's take a look at his views on the current status of Bitcoin in India.

Reporter: Will the Securities and Exchange Board of India (SEBI) still regulate Bitcoin in India?

Somaiya: Of course, because SEBI asked me to provide some information about bitcoin exchanges, so I am collecting them. But all such bitcoin exchanges are illegal in some way.

If it is an official Bitcoin exchange, regulated by SEBI. If it is a private exchange on the internet, how can my Indian funds be invested? In the air? You have to pay something initially as a security.

Either you have to offer something in kind, or something in rupees or dollars, which means it is a currency.

If Indian Bitcoin is a product, what are they doing? Are they manufacturing? What service does Bitcoin provide, what is a profit and loss account? What is the balance? Who controls Bitcoin? A group of people? After answering these questions, we find that it is a barter system.

So, are we going back 1,000 years? What is blockchain? Blockchain is used as currency, or to complete transactions. This means it is a hawala or barter system. So I am very opposed to it.

Reporter: Do you think Bitcoin is used for money laundering or tax evasion in the Indian underworld?

Somaiya: Several people have expressed such concerns. I look forward to meeting with senior officials from the National Intelligence Network (NATGRID). I don't want to comment on this.

Reporter: The transactions of these Bitcoin exchanges take place on the bank side. So how do banks allow such transactions?

Somaiya: I am going to the Enforcement Directorate (ED). This is the ED’s job. Some foreign transactions are being brought into India and then transferred out of India through Indian bank accounts. Someone has to check this. That is why I am very unhappy with the RBI. How can they deliberately ignore something like this?

The Indian Parliament is empowered by the Indian Constitution, so the Central Bank of India must not only regulate Bitcoin in India, but also supervise it.

If some Indian accounts buy foreign bitcoin products and eventually make the transaction with a foreign bank, then they have to submit the transaction details. That is why I am going to the Enforcement Directorate and I have written to the Indian government.