Ever since the crypto wave began to spread, a lot of countries have keyed into it. Sadly, some countries are yet to experience the wonders of cryptocurrency as a result of certain limitations from their governments and India is one of those countries.
An apex court advocate has shed more light on the difficulties faced by the government in regulating cryptocurrency.
Cryptocurrencies Are Difficult To Regulate
Self-described “supreme court advocate and a chartered accountant,” in the person of lawyer Abraham C. Mathews, wrote in an article published in Money Control on Monday that:
“Cryptocurrencies by their very nature cannot be regulated … The Supreme Court should resist the urge to get involved.”
“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.”
The lawyer clarified his position by saying that crypto regulation cannot be a possibility because in the event of a hack, it will be almost impossible for stolen funds to be recovered or the thieves caught, and no intervention of the government can alter this fact.
India’s Ban on Cryptocurrency
Mathews also talked about the Reserve Bank of India (RBI) ban on financial institutions which restricts them from participating in any crypto-related transactions. According to him:
“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.” He continued, “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.”
A Positive Regulation Is What the Community Desires
In the meantime, the crypto community is demanding for positive cryptocurrency regulation. Nischal Shetty, the CEO of Wazirx, a crypto exchange, began a social media campaign to that effect and it is currently in its 124th day. The CEO said, “Every day there are 100s of retweets and likes and thousands of views.”
The government has received many crypto regulatory framework proposals for the country. In January, the law firm Nishith Desai Associates was invited by the Ministry of Finance to present their proposals.
Just last week, the government was given an ultimatum of four weeks by the Supreme Court to draft the crypto regulation. The court was informed by the government, at the time, that the committee working on the crypto regulation is almost done with deliberations.