Indian Crypto Lawyer Argues Digital Currencies are Not Currencies
The Indian Supreme Court, after delaying for months, has begun to hear arguments relating to petitions from multiple crypto businesses on India’s central banks ban towards supporting the industry.
The hearing, which has been on-going for the last three days has seen the lawyer representing the crypto businesses presenting arguments to the court that question the banks authority to ban digital currencies. Asim Sood, an advocate for the crypto companies argued that while nomenclature, cryptocurrencies are defined as an actual “currency.”
The hearing is also seeing arguments that question the banks authority to enact digital currencies regulation as they more resemble that of a commodities. Adding to his argument he made note of various reports and notices that the regulator published against crypto, many of which are contradicting of each other.
However, the Supreme Court judge commented that there are mode of exchange features with digital currencies and that placed them under the regulators authority.
Sumit Gupta, CEO and co-founder of CoinDCX, while addressing the categorization of digital currencies’ stated: “I believe there are many ways in which cryptocurrencies are classified, some countries view it as a commodity and some as a property/asset. It depends on how the countries’ government values the specific asset class – if they viewed it as [a] store of value then property classification or if they viewed as [a] medium of exchange then currency or commodity classification is right.”
If unable to regulate – Ban Crypto
Referencing the recent attempts at regulating the crypto market in Japan, the E.U and the United States, Asim Sood the lawyer acting on behalf of the crypto businesses said the RBI’s decision was baseless simply because it can’t regulate them. He further added that arguments relating to money laundering or the functioning of terror activities comes down to the industries responsibilities towards the process of knowing-your-customer.
Sumit Gupta , in relation to KYC processes added, “Due to the presence of stringent regulation measures such as KYC/AML etc., it has helped us in tracking and curbing down any bad practices. This is the reason, mandatory KYC and other necessary regulatory measures are important for clamping down illegal activities on on-ramp fiat-crypto exchanges, as most of the illegal activities are still carried out in fiat currencies.”
The apex court has listen to the crypto lawyer arguments for three days so far and is expected to continue when it resumes on Tuesday of next week. Whatever is the end result of the hearings, it will have a substantial impact on the crypto industry as a whole.