Legitimacy of Cryptocurrency in India. Video 3 of 3
Channel: MentorTalk
Date: 10/01/2021

The RBI circular was struck down by the Supreme Court by considering some important facts as well, such as: RBI failing to identify in the past 5 years or more, the activities of Virtual Currency exchanges having essentially impacted adversely, the way the entities regulated by RBI function. The consistent stand taken by RBI being that it has not prohibited Virtual Currencies in the country and Even the Inter-Ministerial Committee constituted in 2017, which initially recommended a specific legal framework including the introduction of a new law namely, Crypto-token Regulation Bill 2018, was of the opinion that a ban might be an extreme tool and that the same objectives could be achieved through regulatory measures.
The Court noted that the position as on date was that VCs were not banned, but the trading in VCs and the functioning of VC exchanges were sent to a state of coma by the impugned Circular by disconnecting their lifeline namely, the interface with the regular banking sector. And what was worse is that this has been done (i) despite RBI not finding anything wrong about the way in which these exchanges function and (ii) despite the fact that VCs are not banned.

I will close my talk by summing up in few words starting by quoting Victor Hugo, who said “Nothing else in the world…not all the armies…is so powerful as an idea whose time has come.”. So, nothing can stop an idea whose time has come. Fiscal era of Human race started with a commodity-based barter system and then sovereign legal tenders known as currency system and now we have math-based value system. Let us embrace it with caution and regulation.