Indian Supreme Court Advocate Says Cryptocurrencies Cannot Be Regulated

A supreme court advocate has explained the limitations of the Indian government’s power to regulate cryptocurrency, determining that the court should not get involved. Meanwhile, the crypto community awaits the government’s regulatory framework and the supreme court hearing of the petitions against the banking ban by the central bank.

Also read: SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval

Cryptocurrencies Cannot Be Regulated

Lawyer Abraham C. Mathews describes himself as “a supreme court advocate and a chartered accountant” who practices “in the supreme court as well as the high court and some of the tribunals in Delhi.” He authored an article published in Money Control on Monday 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.”

Community Wants Positive Regulation

Meanwhile, industry participants are calling for positive crypto regulation. A social media campaign initiated by the CEO of crypto exchange Wazirx, Nischal Shetty, has entered its 124th day. “Every day there are 100s of retweets and likes and thousands of views,” he previously told news.Bitcoin.com.

In February, a number of Indian policymakers gathered at a blockchain summit. Among topics of discussion was crypto regulation. At the conclusion of the event, participants agreed that “The regulation is planned to be implemented by end of financial tenure,” according to the post-event announcement.

A number of proposals for the country’s regulatory framework for cryptocurrencies have been submitted to the government. In January, the Ministry of Finance invited reputed law firm Nishith Desai Associates to present their proposals. Last month, the Indian National Association of Software and Services Companies (Nasscom) published a report that calls for crypto regulatory certainty.

Last week, the supreme court gave the government four weeks to come up with the crypto regulation. The government told the court at the time that its committee tasked with drafting the regulation is in final stages of deliberations.

What do you think of Mathews’ view on crypto and regulation? Let us know in the comments section below.

Bahrain Courts Indian Crypto Businesses in Collaboration With Government

The Bahrain Economic Development Board is inviting Indian firms to take advantage of the opportunities its country has to offer including for crypto businesses. The board has been collaborating with the Indian government on a number of issues. The Central Bank of Bahrain recently published its final rules on crypto assets.

Also read: SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval

Indian Companies Invited to Bahrain

The Bahrain Economic Development Board (EDB) has invited Indian companies to set up base in its country by providing “a plethora of opportunities to Indian fintech firms for open banking, blockchain, crypto assets, robo advisory and remittances,” The Economic Times reported Sunday.

As the public agency responsible for attracting investment into Bahrain, the EDB has been collaborating with the Indian government on a number of business areas as well as improving the conditions of Indian workers in the Gulf state, the publication detailed. The EDB has established offices in New Delhi and Mumbai. Noting that India is a key market for his country, EDB Senior Manager Dalal Buhejji said that the board held a roadshow in Mumbai to attract fintech companies in December last year. EDB Managing Director Simon Galpin was quoted as saying:

We are very keen to tap into not only the early stage startups that are coming out of leading Indian cities, but also scale-ups. Bahrain is a great test market for companies which want to diversify outside of India.

Bahrain’s Crypto Regulation

The Central Bank of Bahrain (CBB) announced on Feb. 25 that it had issued the “final rules on a range of activities relevant to crypto-assets,” Trade Arabia reported, elaborating:

The CBB crypto-asset rules deal with the rules for licensing, governance, minimum capital, control environment, risk management, AML/CFT, standards of business conduct, avoidance of conflicts of interest, reporting, and cyber security for crypto-asset services.

Moreover, the publication detailed that the rules “also cover supervision and enforcement standards including those provided by a platform operator as a principal, agent, portfolio manager, adviser and as a custodian within or from Bahrain.” Companies licensed by the central bank including crypto exchanges will also need to follow “rules relevant to order matching, pre and post-trade transparency, measures to avoid market manipulation and market abuse, and conflicts of interest.”

Benefits to Maharashtra and Indian Companies

The EDB explained that there are many benefits for companies moving to Bahrain such as “a simplified licensing process for foreign corporation, taxation incentives, a welcoming environment and unlimited access to Gulf and Middle Eastern markets,” Outlook India wrote. The board added that “It is also looking to create enabling ecosystem for startups, including viable financing options,” the news outlet conveyed.

In December last year, the government of the Indian state of Maharashtra signed a memorandum of understanding with the EDB to provide a cooperative framework to promote the fintech sector in both countries. Under the agreement, the two governments will “collaborate in encouraging delegation visits, fintech educational programs, and cooperation between startups, financial institutions, government agencies, and universities,” Startup Bahrain described.

Maharashtra is home to some of India’s best cities for crypto jobs. Recent data from job listing site Indeed shows that Pune, the second largest city in the state, ranks second for the number of crypto jobs, behind only Bengaluru. Mumbai, the largest city in the state, ranks seventh this year. The Hindu Business Line reported in November that “India and Bahrain have a longstanding economic and trade relationship,” noting that “A large number of Indian businesses have already established operations in Bahrain.”

What do you think of the Indian government collaborating with Bahrain? Do you think Indian crypto businesses should set up base in Bahrain? Let us know in the comments section below.

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#Bitcoin in Bahrain

#Indian Crypto with Bahrain

#Crypto in Government