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Building a Responsible Cyber Society…Since 1998

I draw the attention of the honourable Union Ministers Mr Piyush Goyal and Mr R .K Singh, responsible for the energy sector in the country on the need to take steps to reduce the adverse impact Crypto Currencies are having on the energy sector on a global scale.

It is a pet idea of Mr Modi’s Government that we need to encourage transport vehicles which would use electricity and renewable energy instead of the conventional Coal and Thermal energy. This is being countered by the proliferation of Bitcoins and Crypto Currencies and needs to be checked.

I would like both the Ministers responsible for Energy related activities,  to reflect for some time the havoc that the Crypto Currency system is creating in the whole world in terms of the energy consumption and whether the World can afford it.

We often discuss the global warming and Carbon footprint and design policies to correct the environmental imbalance. But have we ever paused to consider the damage we are inflicting on the global energy environment by not taking action on Crypto Currencies?

Afterall, Crypto currencies like Bitcoin have no economic value to the society other than being the Currency of the Criminals, created by Criminals posing as technologists, for the benefit of the Criminals. The society has no reason to pay a price to make the life of Criminals comfortable and profitable. But that is what the policy makers are doing now.

It is unfortunate that instead of India under Modi taking a lead in preventing the damage to the energy environment being created by Bitcoins and its 1370 cousins (as of 31st December 2017) in the energy sector, we are debating whether India should legalize Bitcoins.

According to one estimate, (Refer digieconomist.bet)the current estimate of energy

consumption by the Bitcoin network isaround 38.21 Twh per year and it has grown from around 10 Twh to this level in the last one year.

This appears to be only refering to the Bitcoin network and if we add the other Crypto currencies, it would be more than double this level.

If this is compared with the total energy consumption in different countries, it appears that Bitcoin network consumes nearly 10% to 15% of the consumption of most advanced countries.

Compared to India whose estimated energy consumption is estimated to be about 1238 TWh, Bitcoin industry consumes around 3% of our consumption and the entire Crypto currency industry should be consuming around 6% of the electricity consumption of the 1.2 billion population. The consumption of Electricity by the Bitcoin industry is said to be higher than that of the whole of Denmark or Nigeria.

If this is not checked, the energy managers of the world will be considered as fools. There is no justification for wasting the precious energy resource of the globe to promote a Currency network for the criminals .

Since China is one of the biggest Bitcoin mining country and it uses Coal based power, it is also said that the Bitcoin industry contributes adversely to the Carbon footprint in the globe as well.

Bitcoin’s villany in  being a “Perfect Black Money” and “Currency for funding Crimes and Terror” is well known. To this we need to add the adverse impact that the Crypto currency industry leaves on the Power consumption for unproductive and negative purposes and the Carbon foot print.

All this indicates that if the Government of India does not immediately move to ban Bitcoin and discourage use of all Crypto Currencies in India, it will be doing a disservice to the global community.

Many people are unable to understand the difference between Crypto Currencies and the Digital Currencies which represent the money in the Bank withdrawable by electronic means. Such people try to create a misconception that opposition to Crypto currency is opposition to Mr Modi’s Digital India Concept. I am sure that you understand the difference and you should educate other members in the Government about why Crypto Currencies is bad for India and we need to ban it forthwith.

Government is also often mislead with the fact that some countries like Japan have recognized Bitcoins and we should also follow. This is not a valid argument since the needs of different countries are different. We know that there are countries which have legalized sale of narcotics and illegal arms. It may be good for them. But we cannot follow them.

We donot know what is the stock of Crypto currencies held by Japan and China. It could be huge and they would like it to be used by converting it into dollars. USA also has a large stock in Government control. China has been very clever and has banned Bitcoin exchanges and prevented the Citizens to trade in Bitcoins but the Government itself is said to be continuing the mining data centers which run like an industry. It is also possible that China must have now shifted its attention on mining other Crypto currencies such as Ripple or Ethereum since it is more profitable than mining Bitcoins and hence it is playing a double game of banning the exchanges without stopping the mining activities.Those who already have a significant share of Bitcoins would definitely want to legalize Bitcoins not only for their countries internal use but also to use it in international payments.

We must resist their attempts since it would be detrimental to our interest.

I therefore suggest that India should take a global leadership position to oppose Bitcoins and Private Crypto Currencies (Not the Government backed Crypto Currencies which may be introduced by Russis or other countries in the coming days), starting with an immediate ban on Bitcoins in India.

In India I am sure that those who have already built up a stock of Bitcoins which unfortunately includes persons like Mr Amitabh Bachchan could be preventing the Government from taking a decision to ban Bitcoins. We need to take a tough stand on this and cannot allow those who converted white money to black by investing in Bitcoins to profit from their activities even if it was done innocently.

We need to show the same resolve that we showed during the demonetization of high denomination notes and now demonetize Crypto currencies.

I request Mr Piyush Goyal and R.K. Singh to move the issue with the Finance Minister as the delay in the decision is hurting the clean image of Mr Modi’s Government.


Whatever was the technological urge for Mr Satoshi in  creating the block chain technology and Bitcoin is a thing of the past. The present status of Bitcoin is as a currency of the criminals. Many of my friends may hate me for saying this but I would like to say Bitcoin today is a currency of the criminals, by the criminals and for the criminals. It is not for honest individuals. It could have been at one time..but not today.

All Bitcoin holders are not criminals… but they could be

This is not to say that all those persons who possess Bitcoins today are criminals. But Bitcoin as a commodity and used as a currency is a product meant for criminals. If honest persons want to also use it, it is their choice.

(Ed: Reminds me of a Kannada proverb: “ಈಚಲ ಮರದ ಕೆಳಗೆ ಕುಳಿತು ಮಜ್ಜಿಗೆ ಕುಡಿದಂತೆ ” meaning “Like sitting under a palm tree and drinking butter milk” )

Bitcoin is the Perfect Black Money

There is a wide support for Bitcoins in India and the support is not surprising at all considering that India is a leading country in the world when it comes to corruption and Black money.

Bitcoin is a “Perfect Black Money” because it is anonymous and transferable across the globe at the click of a button. Just as an e-mail flies across, lakhs of rupees can fly across from India to another country either to one’s own account or to somebody elses’s account.

A Bitcoin wallet which can hold multiple Bitcoin addresses or a simple Bitcoin address for a single transaction can be created as easy as signing up for an e-mail account without any KYC formalities. Money can be transferred into this wallet or address by buying Bitcoins in cash or through bank account or through cards or through western Union or Paypal. If money is transferred through Bank account then there may be a KYC and identification. But there are other means that the black money people know which can easily convert their black money into Bitcoins.

It is therefore correct to call Bitcoin as the “Perfect Black Money”.

Bitcoin is also instantly fungible into 1317 (as of Dec 31, 2017)  other crypto currencies at a click of a button and also convertible into a few legit currencies in the world.

Hence there is no doubt that many Indians including many in the Government bureaucracy and in regulatory agencies are very much in favour of Bitcoins being legally recognized so that all their ill gotten wealth can be held in the “benami numbered account” called  Bitcoin addresses or wallets. Each transaction can be in a different Bitcoin address and for much less than 1 bitcoin (1 bitcoin can be  reduced into units of bitcoins starting from a Satoshi  which is 1 bitcoin divided by 100 million).

As it is, Bitcoin addresses are anonymous since they are public keys associated with private keys of a crypto key pair and the owner holds the private key confidentially. Whoever knows the private key is the owner of the bitcoin. If one wants to transfer the bitcoin, to another, he can do so simply by transferring the bitcoin in his control to another bitcoin address or wallet whose private key is known only to the transferee.

What more do you want to call Bitcoin a “Perfect Black Money” and a darling of all those who support black money and corruption in India?

All this is being explained here not to make people knowledgeable so that they can adopt to the use of Bitcoins to hide their black money. if this happens, it would be a tragedy.

Have you been already poisoned?

But the reason I am putting out this post in public is to tell our decision makers in the Government of India including Mr Modi, Mr Amit Shah, Mr Arun Jaitely and others that when you hear some experts saying that Bitcoin is great, Block chain technology is even greater, that country and this country has legalized Bitcoins etc and try to coax you into believing that all those who are opposing Bitcoins are either technology sceptics or jealous of others who are making money etc, please donot believe them. Many of them might have already asked you to have a “Free Trial of Bitcoin technology” and created an account for you and loaded some bitcoins in your account already. Remember that this is “Poison” and if you touch it, you will be consumed by it.

If you are still not touched by this poison, please come out boldly and confirm it to the citizens of India. Otherwise we will presume that you are all already posioned with Bitcoin.

Why Bitcoin is a currency of the Criminals, By the criminals and for the Criminals?

Bitcoin was created by the criminal syndicates of the dark web who sell crime ware, viruses, conduct ransomware attacks, extort money, sell drugs and illegal arms both offline and online. They obviously donot want any central authority to know of their transactions and hence prefer to deal with Bitcoins. Mr Satoshi who remains anonymous till date could be the biggest crook of all and posing himself as a technologist created an infrastructure for criminal funding.

The entire eco system of Block chains was created to support criminal activity and along with the spread of cyber crimes, the popularity of Bitcoins and other crypto currencies as well as the underlying technology respectably called the innovative “Block Chain” grew. Blockchain is the alter ego of Bitcoins and many believe that if Block chain technology is pushed into the main stream then Bitcoins will automatically survive and grow.

Bitcoin itself is a creation of the software and there is no physical currency or backing of a reserve or a Government promise. But it is being traded at a value of Rs 13-15 lakhs per bitcoins. Now a “Derivative of the Bitcoin” is being created which is another level of imaginary “virtualization of the virtual” with a value proposition for the gullible to pick up. It is a “bubble of bubbles” in another perspective and could burst along with the Bitcoin bubble one day ..unless the world is full of people who want to live in the dream of bubbles. There are many such people around now and they are their tribe may even grow further.

We also note that already Bitcoin block chain has hard forked once and it is anticipated that a third fork is likely to form soon. What it means to the bitcoin value, only future will unveil.

Those who are promoting Bitcoins in this uncertain environment are only trying to fool others and make money. Hence the system is full of criminals.

It is therefore not surprising that Cyber Criminals in the dark web transact only with Bitcoins (or its fungible new versions like Monero or Ripple etc, which may be more secretive than Bitcoins and better for Black money holders).

Since there are only Criminals who are technologically savvy who are working around these Crypto currencies, they also indulge in ICO scams, hacking int Crypto currency exchanges, creating malwares for mining bitcoin/crypto currencies and embedding it into softwares, apps, IoT applications etc so that all of us will use our data and devices to work as slaves and mine cryptocurrencies silently for the criminals as part of the Crypto botnet.

Is Government of India unaware of this?

I would not believe that Mr Arun Jaitely or the Finance Secretary or the SEBI Chairman or the RBI Governor is unaware of the fact that Bitcoin is a “Perfect Black Money” and hence it is great for politicians and other black money holders.

But Government strangely says that “They are Observing”… Observing what?.. the speculation where 4-5 lakh members of the public have already invested in bitcoins through the exchanges? We can  note that these are innocent persons who have given their KYC and received notices.. this does not include those who have opened Bitcoin wallet account with agencies outside India including in Singapore which is developing into a hub of Bitcoin exchanges even for Indian entrepreneurs.

What the Finance Ministry is doing in being a silent supporter of speculation is absolutely unacceptable. They are deliberately not taking action to ban the use of Bitcoins. Chairman of SEBI is publicly in favour of Bitcoins. Ministry gives out conflicting statements now and then so that speculation thrives. RBI appears to be against Bitcoins but seems to have been kept silent by the Finance Ministry.

I want Mr Modi  to show his commitment to removal of Black money in India by immediately taking up a total ban on all Privately created Crypto currencies like Bitcoin, Ripple, Etherium, Monero etc…

Mr Amit Shah may kindly note

If Modi Government does not ban Bitcoins and Crypto currencies, it will appear as if the Government has developed a cold feet in its fight against Black money and corruption. It will lose the moral authority to say that they have done everything to root out Black money.

This  matter may come to haunt BJP in its next election in Karnataka where they have to explain why BJP was interested in demonetization of physical currencies only and are not willing to demonetize the crypto currencies?….

Security Issues

Apart from the issue of Black money creation, recognition of Bitcoins in India will bring in a market capitalization of over Rs 36 lakh crores of money into the floating currency in India and could completely upset the economic stability of the country.

Most of this Rs 36 lakh crores would be in the control of our enemies including China and ISI and will be used to fund terrorists in India. It will be impossible to trace the ownership and transactions of these currencies and our law enforcement persons will be looking like bakras when they have to prove “Money Trail” in Courts in corruption and criminal cases.

Criminals will go scot-free and Terrorists and Naxalites will be able to get funds easily for their operations to break India.

This is the future of India if Bitcoins are not eliminated from the Indian scenario forthwith.

History will Judge Mr Arun Jaitely

Mr Arun Jaitely will go down in history as the person who by his inaction to ban Bitcoin caused the country to collapse.

Will he or Will he not? …ban Bitcoins and all Crypto currencies…. now or when? will be the question.

Dear Finance Minsiter, Do you have a response?

Easy Way to ban Bitcoins and Crypto Currencies

If Crypto currencies are declared as “Benami Properties” since it is held in anonymous identity, dealing with them becomes illegal ab-initio.

Also ITA 2008 provides certain encryption guidelines which the Currencies violate and hence they are already not legal.

All so called Bitcoin exchanges in India are operating without either RBI or SEBI clearance whether they follow KYC or not. They are illegal operations ab-initio.

Projecting anything as a “Currency” violates the RBI Act and is punishable. Marketing of Bitcoins  as a “Currency”, is therefore illegal per se.

We only need the Government to use these existing provisions of law and these Crypto currencies can be eliminated. …

Where there is a will, there is a way. But Government appears to be only trying to find a way out for the criminals rather than punish them in the interest of the nation. Kindly prove me wrong.

Our fight against Bitcoin continues….. 

PS: It is surprising that the media and even Mr Subramanya Swamy is silent on Bitcoins. We can understand the reluctance of the media but why Mr Swamy is silent?.. We await his clarification.


Earlier Articles

PS: It is ironic that Google Ads may be serving ads on Bitcoin on this site even as you are reading. I donot endorse those ads.


New Year Resolutions

Posted by Vijayashankar Na on January 1, 2018
Posted in Cyber Law  | Tagged With: , , , , , | No Comments yet, please leave one

As the new year 2018 dawns on us and we complete the sending of greetings to all our friends, it is time to start thinking how this year will be different from our previous years and how we make it better in terms of the values we cherish.

In pursuance of this objective, we need to set some goals for ourselves in the form of New year Resolutions which are measurable and achievable.

I urge all my friends to start drawing up their New Year Resolutions and share it in the various groups in which they otherwise exchange greetings.

For me, the year behind has been a reasonably satisfying year in which the RBI confirmed the “Limited Liability Circular”. Though it was not entirely satisfactory and the Banks as usual are ignoring it, still it was a major development that was satisfying, after years of struggle on assisting the Bank fraud victims.

The set back however was that the Cyber Appellate Tribunal did not start functioning and having been merged with TDSAT will become further marginalized. May be we need to take up this issue once again in the coming year.

In the meantime, the immediate task is to continue the fight on Bitcoin which is a tough fight since the Finance Ministry is itself determined to legalize Bitcoin and provide an avenue of all Black money in India to be laundered. The attempt to wake up Mr Modi and make him open his third eye will continue.

Year 2017 also saw a perceptible increase in the awareness of Section 65B Certification. This gave a boost to the activities of CEAC after years of hibernation and low growth and the increased level of operations should continue this year as well. Hopefully, the activities should grow at least by 100% during this year over the previous year.

The ODR project (odrglobal.in)  will be another project in long hibernation which forms part of the New Year Resolution of Naavi in 2018 to be pushed up so that it atleast takes some baby steps ahead.

But the next big thing to watch out is the new “Data Protection Act” that will be passed in India and how it works in tandem with the GDPR. HIPAA Audit and compliance has been a good prospect so far and probably GDPR compliance and Data Protection Compliance will be new areas of interest both from academic perspective and business perspective. One of the New Year resolutions to pursue is to develop a compliance framework for these emerging areas.

Hopefully, GOD gives strength and energy to make at least some of these New Year Resolutions to be realized during the year.

I wish all my friends and well wishers a happy new year through these columns and request their support for the future endeavours of Naavi and Naavi.org.





The Year 2017 saw a big fight against Black money which started in the last months of the previous year with the “Demonetization Drive”. The move was bold and long awaited.

However, two things worked against the complete success of this move. The first was the presence of a large number of fake currency notes in the country, some of which was perhaps produced by well equipped Government presses in Pakistan. This completely foxed even the RBI which lost count of the demonetized currency returned to the Banks. The second was the dishonesty of some of the Banking employees who assisted corrupt persons in the society and exchanged notes even at the Bank and RBI level itself.

Nevertheless, though at first glance it appears that the demonetization move might not have succeeded as expected, there is no doubt that not all persons holding black money earlier in Rs 500/1000 denominations could get it converted into new currencies.  Hence in reality, black money did go down in circulation and much of the idle money held by individuals came out into the Banking system.  Many who used proxy accounts to deposit their monies are now caught in the investigation net of the tax authorities and this should result in higher tax revenue for the Government.

However, the year 2017 also saw the growth of an alternate to Black Money in the form of Bitcoins and a phenomenal growth in its international price. There is definitely a speculation that a large part of the Indian black money must have got itself converted into Bitcoins and this could be one of the reasons apart from the creation of a “Future Trade” that helped the Bitcoin rates to go up.

However, within India, the increased attention received by Bitcoins can be directly linked to the “Power of Black Money” and the related “Power of Corruption”. People who are in the forefront of corruption in India are the politicians and the bureaucrats and it is evident that they have become big supporters of Bitcoins now. The techies who created the Bitcoins and the businessmen who sensed its commercial value earlier are now the conduits for conversion of Black Money to Bitcoins and their laundering into new Bitcoin holdings of public who are being lured into the game as if Bitcoins are an investment avenue.

Recently, Business Standard carried a report on 28th December 2017 which has been reproduced below. This report raises several questions of propriety at the way the Finance Ministry is functioning when it comes to regulation of Bitcoins and indicates the possibility of corruption having been taken over the officials.  I request Mr Arun Jaitely to investigate the matter.

Firstly we note that this report filed by one Mr Shirmi Choudhary categorically states that the “Government has decided” and is “Likely to define crypto currencies and bring in a regulatory framework in the Union Budget 2018-19”.

This means that the Finance Ministry is using its power to bring a “Finance Bill” to over come the objections of RBI and give a legal recognition to Bitcoins.

Though the same ministry cautioned on the next day  by the following report, stating that “Virtual Currencies are like Ponzi Schemes”,  the report quoted above is more specific of the intentions of the Government and quotes “A Government official privy to the developments”. It also quotes that the “Expert Panel” has stated that “These currencies are as good as fiat currencies”. It goes ahead to quote the tax officials as stating that “Due to lack of clarity” the gains in Crypto currencies cannot be taxed.

It is clear that the official has revealed that the Finance Ministry is actually trying to help the Bitcoins being recognized as a “Legal Currency” which could be used instead of Rupees in transactions. Once this is done, the entire Bitcoin market capital and along with it the entire Crypto Currency market capital in the world becomes legal tender in India.

We must note that the estimated market capital of Bitcoins is US $ Rs 217 billion and the estimated market capital of all Crypto currencies is about US# 571 billion. (1 billion USD=Rs 6400 crores). The Bitcoins and other Crypto currencies are fungible and can be converted with each other with no control. Hence if Bitcoins are legalized in India, about Rs 36.54 lakh crores equivalent of Indian Rupees would come into “Currency with the Public” which includes residents and non residents and further includes criminals, terrorists, foreign Governments etc. This is perhaps twice the pre-demonetization currency stock in India, and about six times the floating currency in the country.

What will such flooding of the market with free currency mean to “Inflation”? … economists need to explain.

Since some of this holding will be with foreign countries including China, what will be the impact on our international economic stability? the Finance ministry should explain.

Since part of the holdings will come into the hands of the terrorists including ISIS and LeT, what will be impact of this on terrorism in J& K, our home ministry should explain.

Does the Secretary of the Ministry of Finance explain whether there is any possibility of legalization of Bitcoins in the next budget?. If not what do you mean by “Regulation of Virtual Currencies”?

I demand that the Finance Minister Mr Arun Jaitely has to explain to the public of India if anything is cooking up in the background and the honest Citizens will be surprised during the budget session with a decision which will favour Dishonest Citizens of India?. 

If not, how come Business Standard reporter quotes an official of the Finance Ministry on the budget provisions?

If Crypto currencies are recognized under the Finance Bill, there will be no parliamentary debate on the matter and even if it is debated, the opposition is more keen than the ruling party to have an avenue for black money and all our MPs will unanimously pass the resolution to legalize Bitcoins just as they come together for passing a raise in their salaries.

Only Kirit Somayya and Rajeev Chandrashekar would be the MPs who may like to fight against Bitcoins but they will be in complete minority.

The Finance Ministry at present does not even know how to distinguish Crypto Currencies from “Digital Currency and Virtual currency”. They refer to Bitcoin as “Virtual Currency” which itself betrays the confusion of the officials.

Some officials in ED appear to be looking only at the revenue potential of taxing the Bitcoin transactions. We need not be surprised if these officials look at legalizing drug trade and gun trade so that government revenue can be increased.

The SEBI Chairman who should have swung into imposing penal action on Bitcoin exchanges,is completely sold out to Bitcoin recognition to the extent that when MCX posted a message in the MyGOV.in site arguing for legalization of Bitcoins, no action was taken on MCX officials. Shame on them.

The Finance Ministry officials including SEBI are guilty of not taking penal action against the entities which are calling themselves “Bitcoin Exchanges”. The ED has conducted a survey and confirmed that there are more than 4 to 5 lakh perople who have done transactions in Bitcoins. If the exchange is not licensed either by RBI or SEBI and was an “Illegal Exchange”, why is RBI, ED and the Finance Ministry keeping quiet?

I suspect that many of these officials have been corrupted with “Bitcoin Gifts” and cannot be relied upon. The Government has not asked these officials to declare their Bitcoin holdings despite a call for the same. The reluctance itself tells a story of its own.

Is this not a dereliction of duty on the part of SEBI Chairman and also our honourable Minister Mr Arun Jaitely?

The time has passed for Mr Arun Jaitely to say that he is on the side of curbing black money. By not taking any action on Bitcoin exchanges and simply fuelling speculation on whether Bitcoins will be regularized or not for more than six months, Mr Jaitely has become the central figure of “Lack of Action Against Bitcoins”. Today, I may be the only person who have lost confidence on the Finance Minister. But soon there will be others…unless he acts decisively to completely shut off the speculation in Bitcoin trade by announcing the ban on Crypto currency trading in India before the budget.

The year 2017 will not go down as the year of achievement for Mr Jaitely because of GST. It will go down as an year of lack of action against Black Money by allowing the growth of Bitcoins.

I urge Mr Jaitely to clarify that my conclusion is wrong.

I therefore urge Mr Modi to open his third eye and destroy the evil called “Crypto Currency” (I refer to the privately managed crypto currencies like the Bitcoins”. If he does not wake up, all his work against Black Money will be ground to dust under the growth of Bitcon usage in commercial transactions.

This is what I look forward to in 2018.




In a surprising but disgusting news report, Mr Ajay Thyagi, the Chairman of SEBI has come up with a public statement that is intended or likely to move the price of Bitcoin in the Exchanges.

Contrary to the popular opinion,  Mr Thyagi has stated

“Virtual Currencies have not posted any systemic risk to the economy”

“Government Panel is currently looking into the regulation”

Mr Thyagi was speaking at a CII summit when he made these statements. It must be remembered that Mr Thyagi represents SEBI which is the regulator who has so far failed to take any action against the Bitcoin exchanges which deal with the commodity called “bitcoin” without either the sanction from SEBI or from RBI.

By referring to Bitcoin and Virtual currencies as “Currencies”, Mr Thyagi has clearly represented them as “Currencies” which can legally be issued only by RBI. Any commodity touted as “Currency” though not recognized by RBI is just a “bit of paper” (In this case bit of electronic paper) and when value is placed on them, it is pure “Speculation”. The SEBI Chairman is fuelling such speculation and supporting Bitcoins through his irresponsible utterances. The statements can also be challenged as factual inaccuracies or clever manipulation of words that “At present Bitcoin is not a systemic risk” without saying that “In future it can be”.

For a regulator to refer to Bitcoin in a public meeting and to make a statement that Virtual Currencies have not posted any systemic risk to the economy is the height of deliberate misrepresentation to the public.

Bitcoin is an “Anonymously held value proposition” and is being used as a replacement of legit currency.

Can Mr Thyagi deny this?.. if he is put on a witness box in a Court?

If Bitcoin is a value proposition that can replace legit currency like Rupee, how can anybody differentiate it from “Black Money”?.

Mr Thyagi has by making such a statement said something to the effect “Black Money has not posed any systemic risk to the economy”.

Mr Modi and Mr Jaitely should take note of this.

This is absurd. If Mr Thyagi was not speaking from his regulatory position but as a representative of a  Bitcoin start up, his words would have sounded more honest. He needs to immediately clarify his position and in case the media has not represented him properly, he should state so.

Further by stating that the Government Panel is looking into regulation, Mr Thyagi has made it clear that a final view of how to treat Bitcoin has not yet been taken by the Government. This is fuelling the speculation that Bitcoin can still be recognized and will move the Bitcoin price upwards. In the recent days, the move of income tax authorities to ask for information from traders of Bitcoins in India had shaken the market a little and the statement of Mr Thyagi is meant to bolster the market.

It now appears that SEBI is one of the stumbling blocks in preventing action by the Government against Bitcoin. It may be recalled that Naavi.org had pointed out earlier in May 2017 that MCX which works under SEBI was indulging in “Insider Tampering” of the decision of this Government panel (Please read : Is MCX of India involved in insider tampering of the Committee on Bitcoins?.. Directors, Please answer) by posting some supporting views on the MCX letterhead when the Government had called for public opinion on Bitcoin regulation last year. At that time we had demanded an explanation from the Board of Directors of MCX. Subsequently the recommendation was taken down but SEBI did not take any action.

It is now clear that the attempt of tampering of the Panel decision by posting an opinion of MCX in the public forum had the blessings from the highest officials of SEBI.

It is now  not possible to trust SEBI with any credible regulation of Bitcoin Exchange as it has spoken against the RBI and openly supported the Bitcoin community.

SEBI Chairman’s statement  is against known fact that Bitcoin and Virtual Currencies are the “Currencies of Criminals” and is “Black Money” in virtual form whose identity is hidden by encryption so that the holder of Bitcoin cannot be identified and that It can be moved across borders like data and cannot be identified when it moves in and out of the country in the form of data and enables Indians to convert their wealth either in Indian currency or in Foreign currency to Bitcoins or other virtual currencies.

In this context, Mr Thyagi should immediately

a) Declare his holding of Bitcoins even if he wants to say that he does not hold any Bitcoins himself.

b) Resign from his position as the regulator since he has ignored the fact that there are “Exchanges” working in the country, trading in the commodity called “Bitcoin” without license from SEBI and he has failed to take punitive action.

I request Government of India to take immediate action in this regard to ensure that Mr Thyagi is replaced as SEBI Chairman.


The fact that Technologists have scant regard for law is well known. The developments in the Bitcoin scenario is an indication.

Despite Bitcoin is the established “Currency for the Criminals” and “Black Money Hoarding Tool”, technologists say “So What?… I will do what I want.. Let Modi catch me if he can”. Some will say it is “Innovation for Disruption”.

RBI does not have the courage to do what it knows is good for the society…that is banning private Crypto Currencies like Bitcoins like we ban drugs and arms trading.

One of the ways by which Crypto Currency is trying to establish itself is by making Block Chain technology creep into Banking transactions and gain a level of respect that will latch onto Bitcoin as well in due course.

Few in the public will realize that Block chain is a technology and Bitcoin is a product and Blockchain may be acceptable but Bitcoin is not. Bitcoin will be promoted on the adoption of Block chain as a technology under the pretext “Block Chain is adopted by Banks and hence Bitcoin is also likely to be adopted by them soon”… The myth will be corroborated by the news about the price of Bitcoins soaring.

We need to therefore to ensure that Block chain technology does not have an unfettered entry into the system. If Bitcoin has to be blocked, Block Chain’s limitations need to be exposed.

Now we have the dangerous tendency creeping into the Banking system where “Block Chain Technology” is being implemented for different transaction recording. ICICI Bank has reportedly made transfers of Bitcoins from Gulf though the legality of Bitcoin is itself not settled. As long as Bitcoin is being treated as a currency, it is illegal and any Bank indulging in activities related to Bitcoin is violating the RBI Act.

Today, it is reported that InfosysFinacle  has launched a new product “Finacle Trade Connect” incorporating the blockchain based trade finance solution for banks.

Mr Sanat Rao, Chief Business Officer speaking at the time of launch has stated ” the new solution will provide higher automation, increase transparency and enable real-time availability of data”.

Significantly, he has also said

“The framework is ledger agnostic and is capable of working with most industry leading blockchain platforms such as Bitcoin, Hyperledger, Ethereum and Corda”.

This is therefore to be construed as a promotion of Bitcoin, Ethereum and other “Criminal Currency” and Infosys will today join the ranks of terror sponsor organizations like People Front of India (PFI) in radicalizing the Indian Monetary system.

It is unfortunate that the business case made out by Infosys Finacle is to provide a platform for use of Bitcoins and other private Crypto Currencies which are an alternative to holding of Black money.

This is a direct affront to Mr Modi’s fight against corruption and fight against Black money and today Infosys Board including Mr Narayana Murthy and Nandan Nilekani has to explain the statement of Mr Sanat Rao.

I also state yet again, Mr Urjit Patel the Governor of RBI is allowing these developments because he has chosen to remain silent without showing the guts to oppose Bitcoin. I have no expectation from Mr Arun Jaitely and the Finance Ministry because I feel that they are actually in support of Bitcoins and are only held back by RBI’s opposition and possible Supreme Court intervention.

Where does Mr Modi and Amit Shah stand on this? As of now it is not clear. Though I have sent many communications to the PMO, Mr Modi and the PMO has chosen to remain silent because they donot want to go against Mr Arun Jaitely’s advise. I presume that Mr jaitely is still reeling under the pressure of managing the fall outs of demonetization and GST and is unable to take any other hard decisions and will be happy to procrastinate and keep “Observing” how Bitcoin creeps into our economy.

We Indians did the same mistake of allowing terrorism creep into Kashmir and today Kashmir is a problem that has become too difficult to handle politically. Same way Bitcoin if not killed today will eat into Indian Economy and devour our system.

While the politicians wait for the Gujarat elections to be over, I would like to ask some questions to RBI and IDRBT.

  1. Finacle Trade Connect is meant to be a product to be used in the Banking system. Is it not necessary for IDRBT to clear the software? Has it been done?
  2. Block chain is a technology of ledger keeping where there is no central authority for authenticating any transaction. It is a peer to peer authentication. Our Banking system involves a Banker-Customer contractual relationship. If I as a customer of a Bank propose a transaction to the Bank how can some Tom Dick and Harry operating a block chain node approve my transaction? Is it not a power of attorney holder of the Bank alone who has the right to approve my transaction?
  3. Why should every block chain node at all be aware of my transaction even if it is encrypted?
  4. How does Banking law permit disclosure of my confidential transaction to be published on the block chain?
  5. Who will take the liability if the approval is defective?
  6. What if the block chain forks?
  7. Since Block chain is a public chain, is it not amenable for DDOS attacks and malware injection?.. Who will be responsible for such malware attacks?
  8. Is the statement of Finacle indicative that IDRBT has approved Bitcoin as a technology and Banks are preparing for use of Bitcoins in their transactions?
  9. Since Infosys is the organization behind GST which had many technical glitches thanks to their inefficiency, will Infosys also push the Block Chain technology to GST as well?
  10. Dear Mr Modi, are you aware of the implications of remaining silent on Bitcoin introduction into our economy?. I donot see any difference between this and the poisoning of the Indian minds by organizations like Zakir Naik and PFI. Why are you shying away from taking control of this Black money alternative called Bitcoin?

I look forward to agencies like RBI and Finance Ministry to respond to these questions. Honest India wants to know if Corruption has grown so big that even Mr Modi has to bow his head before Bitcoin?


P.S: As an honest Citizen of India, Naavi has done enough to highlight the dangers of Bitcoins and why it needs to be banned in India. If the Government, RBI and informed members of Public still wants to embrace Bitcoins it is their choice.

However, if the Indian economy collapses, then even people like us will have to suffer. But if this is the future of India we have to suffer and the concept of Achche Din, perhaps Naavi has to also accept defeat that Corruption in India is the king and Bitcoin which is the most effective tool of corruption cannot be defeated…. 

Hope this is the last article on Bitcoin that I need to write…