The wait of the crypto community in India might get an indefinite extension after the supreme court lawyer stated the government limitations in crypto regulations. In the opinionated view, Abraham C. Mathews, the supreme court advocate and a chartered accountant said that the Indian government should not be involved.
The crypto users in India are awaiting the Supreme Court’s hearing for the petitions against the crypto ban on all banks, officiated by the central bank. Last week, the supreme court gave the government four weeks to come up with the crypto regulation.
Lawyer Abraham C. Mathews authored an article that was recently published in Money Control voicing his opinion on cryptocurrencies and the Indian government’s efforts to regulate them. According to him:
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,” he wrote. While praising blockchain technology, believing that it “has taken off,” he claims that “the revolution called cryptocurrency has all but failed.”
The advocate explained his position by stating that crypto regulation simply cannot be enforced due to the “alarmingly low” probability “of the coins being recovered or the perpetrators being discovered” when an exchange is hacked. He emphasized that “Nothing that the government introduces or requires can change this fact.”
He proceeded to talk about how the Reserve Bank of India (RBI) “has so far … barred banks from transacting with entities that deal with cryptocurrencies,” elaborating:
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 further asserted: “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.”
Meanwhile, industry participants are calling for positive crypto regulation. Besides the social media campaign that was initiated by the CEO of crypto exchange Wazirx, Nischal Shetty, and entered its 124th day, the government of India receives a number of proposals from institutions like Nasscom and many other reputed law firms, related to the crypto regulatory framework.