At present there is no regulation or any ban on the use of cryptocurrencies in the country. The Reserve Bank of India’s (RBI) order banning banks from supporting crypto transactions, was reversed by the Supreme Court order of March 2020.
Paid news features, misleading social media announcements besides advertising on television channels during cricket matches and screening of Bollywood films, all contribute to the spread of cryptocurrencies’ tentacles infiltrating the Indian Diaspora.
Crypto currency has succeeded in capturing the fancy of millions of Indians, including those who belong to the lower income category. People at large regard this as a means of getting rich quickly and are blissfully unaware of the losses they will stand to incur in absence of a proper regulatory framework.
It may be recalled that our banking regulator, Reserve Bank of India (RBI) put its foot down on crypto currency usage in India. However, the promoters resorted to litigation that ended with the Supreme Court bringing a stay into the matter.
What followed subsequently was “tariq pe tariq” meaning repeated postponements over dates for the hearing that has given the promoters of the crypto business a free hand in handling media propaganda, luring more and more people in the process to bite their bait.
Moreover, the unwillingness of politicians of any hue to raise concerns over employment of unethical marketing strategies that promise to digitally revolutionize money transfer processes in the economy should serve as an eye-opener.
For one thing, crypto currency is totally devoid of any regulatory framework, and in the instance of any fraud or losses sustained due to unfair practices, the end user or customer has nowhere to go for lodging a complaint. Secondly, social media platforms make it look very simple, with users having to only download an app that can facilitate their participation in the crypto platforms.
The Centre’s continued stubborn silence over the risks that are posed by the crypto businesses clearly reflect the tacit support these players enjoy from powerful politicians in our country. Even as a few sane voices raise cries of protest against these unscrupulous and predatory elements that prey on the global finances, the authorities are acting as stone deaf.
