Bitcoin Case Study

violation of its jurisdiction, an aggrieved party may file a petition in the State High Court. It is important to note that while challenging the decision of a statutory authority, generally the scope of appeal is limited and there is a high degree of deference by courts. The Supreme Court has recognized that in matters relating to economic policy, courts must not interfere unless arbitrariness is writ large in the decision making process. Even in cases where intervention of the court is justified, the court would only examine the decision making process and not the decision itself.

The principal laws concerning Bitcoin are:

i. The Constitution of India, 1950; ii. The Foreign Exchange Management Act, 1999(“FEMA ”); iii. The Reserve Bank of India Act, 1934 (“RBI Act ”); iv. The Coinage
Drug Trafficking
Silk Road, launched in June 2011, and only reachable by people using Tor, the software that lets one surf the dark web anonymously. Countless people to get access to illegal merchandise, spanning from drugs to assassins for hire, used Silk Road. An estimate of $1.9 million dollars’ worth of Bitcoin transactions per month was done according to a research. This came as a confirmation of the fact that Bitcoin is fast becoming the first choice for drug dealers to shelter themselves from the scrutiny of the law.

III. Tax Avoidance and Evasion
There are very few nations who have released rules or guidelines regarding the treatment of Bitcoin for the purpose of taxation. While most countries have not resolved the issue of taxation of Bitcoin and transactions in relation to Bit coins, it is speculated that the answer might be in affirmative. However, in case other countries follow suit and bring Bitcoin under tax laws, it must be kept in mind that since it is not a government-backed currency, people might not report all transactions made when Bitcoin is appreciated. This will make it even more difficult for the government to detect and curb tax evasion.

IV.