Author: Jagdish Kumar, India
Which can be a boon for Indian crypto exchanges & community is the recommendation of India Law Commission that has supported cryptocurrencies as valid form of electronic payments.
The commission has recognize the role of cryptocurrencies at par with debit and credit cards in a report that has been submitted to the government.
In its report titled ‘Legal Framework: Gambling and Sports Betting Including in Cricket in India’, the commission said, “Gambling transactions should be made cashless, making use of electronic means of payment such as credit cards, debit cards, net-banking, Virtual Currencies (VC – also known as Cryptocurrency), etc.”
The commission has given a report to the Indian law ministry on how to curb illegal betting menace in the country’s popular game, cricket.
It the report, Law Commission cited that in Hong Kong during the recently concluded 2018 Football World Cup, over 540 people were arrested for gambling using cryptocurrencies.
The Philippine Gaming Regulator, (PAGCOR) which is facing a similar problem, losing millions (in fiat currency) to illegal and unregulated gambling every year, the report added.
In 2017, the Indian law minister, Ravi Shankar Prasad was asked by the Supreme Court to consider the possibility of legalizing betting and gambling to avoid financial crimes, which the minister forwarded to the Law Commission for their suggestion and views.
The report also said, “The issue of online gambling has further been worsened by the rise in popularity and ease of availability of VC, a form of electronic money. Having taken the form of a parallel economy, gambling with VC, pushes even the online gambling market underground, and very often, out of the reach of the law enforcement authorities.”
The commission also said that there needs to be some regulations on what will be the upper limit of gambling and there should be not linkages of permanent account number (PAN) and unique identity number (AADHAR) under this.
Similar restrictions should also be prescribed for the purpose of the amount one would be allowed to stake while using electronic money facilities of the likes of credit cards, debit cards, net-banking, VCs, etc, the report added.
Apart from the Law Commission of India, the government has also constituted another body in April 2017 to draft regulations for cryptocurrencies, which is yet to submits it report even after a year.
Image credit: coinivore.com