SC allows pleas against RBI circular barring banks from providing services related to cryptocurrency
When countries like USA, UK, China, Japan, South Korea, Germany, Australia, and Russia along with small countries like Cambodia, Estonia can think about crypto regulation, it is really surprising to see the Indian Government thinking about banning cryptocurrencies.
In conversation with Digpu, Adv PM Mishra talked about the stance of various countries over cryptocurrency regulations. He talked about a comparison of the impact of this ban on the countries in the long run.
Adv Mishra said that he had analyzed the various regulations in different countries and was quite invested in knowing how the government in those countries encouraged regulated cryptocurrency. He has somewhat understood what hindered the same process in India and why cryptocurrency got such hype in India even after being regulated by other countries.
"An Inter-ministerial committee has proposed the legislation that bans the use of cryptocurrency in India and makes violations punishable with a fine or with one to ten years of imprisonment. Called the 'Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019', the bill stated that 'cryptocurrency shall not be used as legal tender or currency at any place in India'. It also makes promotion, advertising, and abetment in the participation of the use of cryptocurrency punishable with a fine, or prison term of up to seven years. It makes a repeat offense punishable with a prison sentence of 5-10 years along with a fine," explained Adv PM Mishra.
The committee's rationale for banning cryptocurrencies is that cryptocurrency is unreliable, harmful to customers, can cause interference in the monetary policy and regulation of monetary policy. In addition to that, the committee disregards it for not being money at all.
Let's try to figure out answers of all these points & conclude it -
1. They are not money at all - None of the countries in the world has treated crypto as legal tender and neither should India.
2. Value is unreliable - If it is so then how come are big investment houses & world-renowned business houses investing crypto? Have we really done our exhaustive research well here?
3. It's harmful to the consumer - We need to frame policies to prevent the same, it is a technology which can be regulated for sure. This technology is absolutely traceable but the government needs a strict policy framework. Just like America's Compliance Program made possible the restitution of half a million dollars to fraud Victims of Bitcoin.
4. Mining cryptocurrency requires a high volume of electricity - So far it is still debatable if there is any doubt in this, then we can use 'Solar Power' but we have to get into the business as other countries. Cryptocurrency is not only a digital asset but we need to understand the way China is trying to market it's digital currency globally otherwise India will lose the edge here. We also need to study Japan's crypto regulation model.
In conclusion, Adv PM Mishra from Finlaw Consultancy said that the way India is emerging as an aggressive nation these days, it is hard to believe that the government will ban cryptocurrency. If at all Government will decide in favour of the crypto ban, then India will lose the dollar battle globally. Other countries like China, Japan, and Australia will lead the show and India will only remain a service provider.
India is a great country having the capability and the boon of youth. The government should study each country's regulation once again looking at the current situation, prepare regulatory framework with minimum permission & observe how it works. In the meantime, we can train all regulators & law enforcement agencies on Crypto Scam, so that consumer should not suffer.
Probable Indian regulations for cryptocurrency -
1. 100 per cent bank account transaction on crypto buy & sale or else 200 per cent penalty.
2. Allow only Bitcoin, Etherium, XRP & other private coins to put security deposit with regulators.
3. Three months audit for exchange.
4. Tech audit & clearance committee submission each week by Exchanges.
5. Bank account in limited banks after due police verification of exchange owner & technology provider.
Adv Mishra hopes that the current Indian government will definitely look into this matter & and there can be some positive news for the Indian crypto community.
This story is provided by Digpu. ANI will not be responsible in any way for the content of this article.