Today’s Economic Times carries an article “Crypto Exchanges want Sebi or a New Entity as regulator, not RBI”
It appears that the Bitcoin lobby has not been able to corrupt RBI which is standing up to its principle that Private Crypto currencies such as Bitcoin, Ethereum, Dogecoin etc are all meant to kill the legacy currency system of sovereign nations.
Though the Indian Crypto Exchange owners have been able to compromise several bureaucratic agencies, RBI has understood that allowing Bitcoins to be easily exchangeable into legit currency is declaring that “Black Money” is legal.
If RBI agrees to this demand, the central bank will lose all control on the monetary system in India and there will be financial chaos in the country.
After the recent attack on the Gas pipeline in USA and also the Washington Police by Bitcoin ecosystem which includes the Cyber Crime, Drug Trade, Illegal arms trade and all crimes that the DarkWeb represents, the US Government turned its screws on Bitcoins.
US Government appears to have realized that if we want to kill the Darkweb, we have to first kill the currency of the Dark web which is the crypto currency.
Now the Indian Crypto industry has realized that RBI is not amenable to bribes and the Ministry can at best be kept silent for some time because it is ultimately led by Mr Narendra Modi.
Seeing that RBI is likely to be unyielding and soon the Tax authorities will start investigating the source of declared crypto currency holdings, the Crypto Criminals of India want to get rid of RBI and appoint SEBI to be their regulator.
We have pointed out in our earlier article ” Black Money gets a Boost from SEBI. Mr Thaygi should be removed as SEBI Chairman” how SEBI in the past has shown its support to Bitcoin.
We had also pointed out that MCX which works under SEBI had officially supported the Bitcoin regulation” and sheepishly withdrew when Naavi.org exposed their designs.
Now Mr Monark Modi, founder of crypto currency exchange Bitex wants SEBI to regulate the Crypto currencies and not RBI. Knowing the earlier views of SEBI and MCX, Mr Monark knows which regulator is on his side.
The argument Bitcoin is not a currency but a commodity is technically correct. However, the Crypto industry has declared that their objective is to make Bitcoin a “Substitute currency to the legit currency”. There is a well developed market like Foreign Exchange market where trading of Bitcoins and other cryptos take place 24X7. The perception is therefore more relevant than the technical issue.
The declared objective of Bitcoin right from its inception is summed up below.
Bitcoin has been created as a “Currency”, used as “Currency” and promoted as “Currency”. Any other representation is is just an attempt to mislead the law makers.
Bitcoin industry was able to get the Supreme Court accept devious arguments and provide a favourable judgment that enabled the industry to thrive . The industry feels that if the Bill fo ban Crypto currencies is passed, they can again go to Supreme Court and they will find some friends who will get another “Bollywood judgement”, that can be scripted as per the direction of their lawyer.
This judgement would be considered as historic as the judgements like Keshavananda Bharti judgement or the Putaswamy Judgement.
While Keshavanand Bharti judgement propounded the primacy of the basic structure of the constitution and curtailed the powers of the Parliament, Puttaswamy judgement went a step ahead (See J Chelmeshwar judgment) that the judges have the freedom to interpret and even add to what is not written in the constitution.
On the other hand, this Bollywood judgement showed how a clever scripted judgement can come out of our highest Court to with a ridiculous argument that “X, the litigant is right but Y the other litigant will be declared as winner of this case”.
Given this unpredictable status of law in India, Bitcoin criminals can get any law passed as they like and get the endorsement of the Supreme Court also. India today has a system of Governance where Supreme Court takes even administrative decisions on how Oxygen should be distributed across the States. It can therefore be expected that the Supreme Court can also draw up a law on its own making Bitcoin and other Crypto Currencies acceptable as legit currency.
Next time, the Bitcoin lobby may be able to convince the Supreme Court to come up with a judgement stating that Court fee can be paid out of Bitcoins or salaries of Judges may be paid out of Bitcoins. This will clear all doubts in the minds of honest citizens like us that India will in future be led by Black money and not the legit RBI money. Since the Government has recently received a billion dollar donation in the form of Bitcoins for Covid relief, the Government can use the funds for meeting salaries of Judges since they are now required to act as the Alternative Cabinet of the country and take day to day administrative decisions.
Given this scenario, I am not surprised that the Bitcoin lobby wants to change the regulator. Tomorrow the same lobby will want a change of the PM also. The recent defeats of BJP in West Bengal and Kerala indicate that anti nationals can come to power by religious vote consolidation and these same groups can also defeat BJP at the national level one day…if not in 2024, may be in 2029. Once the Government changes, Bitcoin criminals will get the regulator of their choice and can sell India for Bitcoins.
People like us are hoping that in our lifetime, Mr Narender Domodar Das Modi will not let the country’s economic system go to dogs. We also hope that the new crop of Supreme Court judges will also realize their responsibilities and will not let their views manipulated by clever lawyers.
The more delay there is to pass the Crypto Bill, more pressure would be brought on the Government to get Crypto currencies brought into the main stream. It is unfortunate that our Finance Ministry is unable to muster courage and get the Bill passed. There will always be media and journalists to write that Bitcoin is a great boon and try to persuade public to invest more and more in Bitcoins and other crypto currencies. Many such investors have lost their money and they are unlikely to get any legal support to get protection from frauds involving bitcoin purchase or usage.
I request that those who understand technology and also have the country’s interest at heart like Mr Ratan Tata to clarify Madam Nirmala Smitherman that banning crypto currencies has nothing to do with technology innovation. Block chain as a technology can continue to be used without Bitcoins or other Crypto currencies. This excuse to gain support for Bitcoin should be brushed aside with the contempt it deserves.
I also want Mr Amit Shah and Mr Ravi Shankar Prasad to appreciate that banning the use of Crypto currency is the first step to reducing cyber crimes, terrorism and even the farmer’s unrest. They should support the Crypto ban with all the power at their command.
Let wisdom dawn on our decision makers in Delhi.
Naavi
