Bitcoin regulation: Why it makes sense to recognise it as a currency

It is likely that Bitcoin has been used to facilitate enormous capital flight out of India, especially after demonetisation; rupee volume of Bitcoin trades has risen considerably over 12-18 months

This article, originally published on December 11, 2017, is being republished, as the Supreme Court has revoked the ban imposed by the Reserve Bank of India on cryptocurrency in 2018. 

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One of the challenges that Bitcoin poses is that it lends itself very easily to bypassing currency regulations. It was designed that way, with its decentralised verification network and built-in anonymity. As a result, the cryptocurrency has also been used for all sorts of criminal transactions on the Dark Web. Copycat virtual currencies designed on the same principles have also been used for similar purposes.
 
The first time Bitcoin