The Indian government and regulators in India want people to think of Bitcoin as a shiny new toy. In their attempt of condemning it they might have praised Bitcoin instead. India government,
An opinion column published on Monday by Abraham stated that the Reserve Bank of India had no control over the bitcoin technology functions and neither could it protect investors by warranting users any safety.
“Since the transaction is not traceable, one simply does not know who the real perpetrator was,” Mathews said.
There was a year long drama between the crypto startups and the Indian government over crypto regulations in India. In April, 2018 the RBI also issued a circular in which it ordered the banks to stop offering services in crypto-based firms. The circular came into action in July 2018 and the India crypto market started losing its startups.
Here is a copy of the last Supreme Court Order dated 25th February. 4 weeks time is granted to the Government of India as the last opportunity. pic.twitter.com/yrXc1k87cC
— Crypto Kanoon (@cryptokanoon) February 28, 2019
However, some were determined and dragged RBI to the Supreme Court. Kali Digital Eco-systems Pvt. Ltd. which run the exchange CoinRecoil with three other petitioners claimed that RBI was misusing it’s position of power against an emerging industry. It’s been seven months since the hearing but the Supreme Court is yet to reach a decision.
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,” wrote Mathews.
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Mathew is not the only one that believes that cryptocurrency can be shut down like that. Some of the top economies, like Japan, United States and South Korea, understood the wild nature of cryptocurrency and tried not to push it to the limit. They knew they just couldn’t control this free spirit. If they had gone against it, people wouldn’t have stopped and they would have just continued to exchange it for fiats in an underground OTC market just like they do in India.
Finland Central Bank wrote it quite beautifully when they explained that Bitcoin cannot be regulated and there is no need to do so either.
Bitcoin’s design as an economic system is revolutionary and therefore would merit an economist’s attention and scrutiny even if it had not been functional.” said the working paper from the Finland’s Central Bank.
The Supreme Court has instructed the RBI and the Indian government to come up with a new way to regulate cryptocurrency. Till that time crypto users can keep playing with their “shiny new toy” in secrecy.