In its 276th report to the Union Minister of Law and Justice, Ravi Shankar Prasad, the Indian Law Commission favoured gambling transactions with the use of Bitcoin and other cryptocurrencies.
Ban By RBI
Recently, the Reserve Bank of India (RBI) had banned Indian banks from cryptocurrency dealing. During this period, the Law Commission of India suggested the cashless means for gambling transaction using cryptocurrency. An excerpt from the report read, “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. Stringent law(s) should be put in place to control Foreign Direct Investment. And at the same time, to prevent money laundering, while also implementing necessary tax reforms.”
As a result of the exponential increase in illegal gambling after the prohibition imposed by the Indian law, Ravi Shankar Prasad made this proposal to the Union Minister of Law and Justice with the goal of decreasing the black money generation and circulation. In this way, the government will be able to regulate the gambling. And it will also be able to create transparency for the detection of money laundering and fraud.
The Commission said, “Betting and gambling transactions should be linked with operator’s as well as player’s/participant’s Aadhaar card/PAN card, so as to ensure transparency and State supervision. The cap on the maximum amount that can be staked in a wager should be fixed by law and be strictly implemented.”
Indian Law Commission
First Established by British Raj Era in 1834, the Law Commission of India is an executive body of the government. Its major function is to work for the legal forum. And it primarily comprises legal experts who are entrusted a mandate by the Government. The Law Commission ‘reviews judicial administration to ensure that it is responsive so that delays are eliminated, arrears are cleared and disposal of cases is quick and cost-effective without sacrificing the cardinal principle that they are just and fair.’