Reserve Bank of India (RBI) Denies Bitcoin Ban, Shocking the Indian Cryptocurrency Community
- The Reserve Bank of India (RBI) has denied claims it will be placing a complete ban on transactions involving cryptocurrencies.
- An Indian lawyer has filed a Right to Information (RTI) against the RBI as the nation's community aims to learn more about RBI's plans, regarding crypto assets.
There are several countries in the world that have been extremely friendly towards crypto and have gone out of their way to set up regulations that encourage the industry such as Malta and several countries in Europe.
Major Asian Economies Take Hostile Stance Towards Cryptocurrencies
Unfortunately, several major Asian economic powers such as China and India have not taken a favorable stance towards the crypto industry. This, as stringent laws have been put in place regarding crypto-related businesses – which has led to several firms having to close down their offices in the country and the industry being stifled as a result.
However, the Reserve Bank of India (RBI) has come out to state that they are not part of the plan to ban cryptos within the country. On May 7, 2019, an individual by the name ‘Team Blockchain Lawyer’ filed the right to information (RTI) regarding the alleged plan by the government to ban cryptocurrency in the country.
According to local sources, India's government was considering banning cryptocurrencies and a similar application had been filed by Coin Crunch but received no responses from the government.
Responding to the Allegations
The Reserve Bank of India has responded to this right to information applications in an update that was shared on Team Blockchain Lawyer’s YouTube channel. While most would have been convinced that the government was looking to ban cryptocurrencies, the response of the application was rather interesting.
“They (Reserve Bank of India) have not received any communication from any department nor have they given any communication to any government department pertaining to drafting of this bill,” the response says.
This response was not quite what most of the Indian crypto community was expecting as the actions have been taken in the past and the overall environment is not very crypto friendly.
This was further supported by the fact that some sectors of the Indian government such as the Department of Economic Affairs and the Central Board of Direct Taxation have formally endorsed the idea of banning the sale, purchase or issuance of cryptocurrencies altogether.
Is This to Be Believed?
While this might be comforting for some, it does bring about another layer of confusion towards the treatment of cryptocurrencies in India. What seems to be clear, however, is that India is not particularly friendly towards cryptocurrencies, but just how long this ceasefire will last is unclear. Several government departments have already endorsed the idea of a ban and the actions that were taken by the government in the past have not been particularly encouraging.
India, just like China, is an example of how much trouble the cryptocurrency industry is having to endure in the bid to get proper acceptance worldwide. Indian crypto enthusiasts and those within the Indian crypto community are still fighting the government to get acceptance and some are giving up and have simply moved to more welcoming climate such as Malta, Europe, Australia and so on.
With many great projects coming up that will likely lead to a lot of adoption, it is possible that one government will be forced to reverse their views on cryptocurrency or risk being left behind when adoption finally becomes mainstream.