In what could have been a revolutionary verdict in the cryptocurrency history of India, the verdict for the cryptocurrency versus RBI case was adjourned within minutes of starting, much to the chagrin of crypto enthusiasts in India who had waited for months for the verdict to be out and change the crypto face of India. According to a tweet by the CryptoKanoon, the matter is going to be heard in the second week of July for final arguments on a non-miscellaneous day.
In an earlier hearing, the SC had assigned four weeks to the Union of India to decide on its take on Cryptocurrency. This included the regulations involved and clarity on the ban imposed by the RBI. The hearing was expected to clarify these details and provide a full stop to the imagination of the people of India who were dangling between hope and disappointment pertaining to the verdict.
How the Verdict could have Changed the History
We are not here to decide what the SC should have said or done, but we are here to weigh the pros and the cons that could have followed if the SC had given the nod to the digital money. It must be clarified here that digital money and cryptocurrency operates in a grey area in India since it has neither been legalized nor been banned. It is just that the centralized banks have been asked not to work with crypto accounts. However, crypto traders have not been restricted from buying or selling bitcoin through local OTC exchanges.
For instance, Zebpay, a local exchange warned that if the crypto accounts were disrupted, deposition of the rupee and their withdrawals would be impossible. Speaking to the media, it said,
“The RBI circular only talks to banks, and other regulated entities about shutting accounts. This doesn’t affect BTC and other cryptocurrencies.”
Indian Officials Positive on the Outcome
Despite the lack of knowledge about Crypto operations, Indian authorities believe that legalizing cryptocurrency on pen and paper would streamline the economy of the country with less amount of the fear of money laundering. On the flip side, if cryptocurrency trading heads toward P2P platform, it would be difficult for the government to keep a watch on the activities involved with it.
Japan Could Show the Way
The country has come a long way in understanding the cryptocurrency market and establishing regulations that brought out the best in the industry. In September 2018, delegates from India were sent to Japan to understand the regulatory framework imposed by Japan. Japan has come a long way in establishing blockchain and cryptocurrency policies to be on par with the regulatory framework of international standard. India should learn from Japan and its financial service agency on how to implement a verification policy to strengthen its economy.