Indian Lawyer and Supreme Court Supporter: Cryptocurrencies’ Nature Allows for No Regulation
The Central Bank of India has come down hard against the cryptocurrency marketplace over the course of 2018, citing the security risks that come with a market that proves recalcitrant to being regulated.
So with that in mind, is it simply a case of imposing a form of the regulatory framework upon cryptocurrencies that are traded within the sub-continent? It's not that easy according to one advocate within the supreme court. Going on to explain that kind of limits that the government has working against it in such an attempt of regulating such a vast ecosystem.
With this in mind, the individual went on to state that, rather than pursue the arduous task of regulating, the Indian government should have an arms-reach approach to the community.
While this is taking shape, the cryptocurrency community waits, often with a certain degree of anxiety, the decision of the Indian government when it comes to the proposal and creation of a regulatory framework, while the Supreme Court continues to hear the numerous petitions being filed against the banking ban which was imposed on cryptos by the Indian Central Bank.
The Wicked [Crypto] Wild – Crypto Cannot Simply be Regulated
While he professes that he himself is a ‘supreme court advocate and chartered accountant,' Abraham C. Mathews also operates as a well-known lawyer in India, who works ‘in the supreme court as well as the high court and some of the tribunals in Delhi.'
Having recently authored and since published an article within the news outlet Money Control at the beginning of this week. Within this publication, he expressed the view that India is on a fools' errand in its current mission to try and regulate the world of cryptocurrencies.
In a statement made by him:
“Cryptocurrencies by their very nature cannot be regulated … The supreme court should resist the urge to get involved.”
The Lawyer, accountant and self-professed ‘advocate' went on to explain this viewpoint in greater depth within his article:
“There is simply no denying the fact that cryptocurrencies have not gained the widespread usage their early proponents predicted, with usage as currency still restricted to a few pockets of enthusiasts,” he would go on to further provide praise the underlying blockchain technology, regarding it as a game-changing innovation that has truly ‘taken off,' further adding that “the revolution called cryptocurrency has all but failed.”
So why is it that he takes this position on cryptocurrencies, he argued that it's not as easy as imposing policy because they simply cannot be enforced. This is because the likelihood of ‘coins being recovered or the perpetrators being discovered' has an ‘alarmingly low' probability of happening.
When a specific cryptocurrency exchange is subject to hacking, he stated that “nothing that the government introduces or requires from these exchanges can change the state of play.”
Having stated this, he went on to discuss the fact that the Reserve Bank of India (RBI) has worked to do little except “bar banks from transacting with entities that deal with cryptocurrencies,” delving further into the subject by explaining:
“This is, unfortunately as far as the central bank can go. You cannot regulate … something that you do not have some semblance of control over.”
Continuing on, he went on to further express the fact that banning and restricting crypto will do nothing to solve the problem, and only create a black market for crypto in India:
“This is not to say that cryptocurrencies must be declared illegal. It must be treated for what it is: a shiny new toy. Let them play with it. However, giving it statutory or regulatory legitimacy is not just imprudent, it is foolhardy.”
What do We Want? Positive Regulation! – Crypto Community
While all this activity is going on, participants in the industry are seeking out as seamless a regulatory policy as is possible from the government. Some of there participants include the likes of Nischal Shetty, who serves as the CEO of the cryptocurrency exchange – Wazirx. The company, having initiated a social media campaign, stating on the 124th day of this campaign:
“Every day there are 100s of retweets and likes and thousands of views,” having previously explained to news sources at the time.
Over the course of February, Indian policymakers made up the attendance of the Blockchain summit. And were members of the audience in such talks as those around cryptocurrency regulation. By the end of the conference, these attendees concluded that “The regulation is planned to be implemented by end of financial tenure,” according to their statements made after the event.
Since then, there have been a number of proposals placed in front of the country as suggested components of a regulatory framework for cryptocurrencies. In January of this year, the Ministry of Finance invited the well-reputed legal institution and firm – Nishith Desai Associates in order to put their proposals to the government directly. Over the course of last month, a report was eventually published by the Indian Association of Software and Services Companies (Nasscom), which calls for more clarity and certainty when it comes to cryptocurrency regulation.
Over the course of late February, the Supreme Court gave the Indian government roughly one month in order to come up with robust and effective regulation for the cryptocurrency market. Having told the supreme court at the time that the government's committee, which was tasked with formulating these regulations were coming up to the final stages of drafting.