Reserve Bank of India’s (RBI) Cryptocurrency Ban to Get More Clarity in November
India Supreme Court Asks Government For Opinion on Cryptos Within 2 Weeks
Recently, the Supreme Court of India has decided to ask the local government for an opinion on the cryptocurrencies and their market amid the fallout that was caused when banks were blocked from providing services to crypto exchanges.
Yesterday, October 25, the Supreme Court held a hearing with companies, the Internet and Mobile Association of India (IAMAI) over the decision of the Reserve Bank of India (RBI) to ban domestic banks from providing crypto companies with their services. At the end of the hearing, the government was given two weeks to state its view on the matter.
While cryptos are (still) not legal in the country, they have been pushed to illegality because of several measures created by the government. Some advocates for the central bank affirm that the bank took its decision to discourage the use of cryptos, which is an official policy decision from the government at the time.
The founder of CEO of the Indian crypto exchange WazirX has affirmed that the government must give some finality to this issue and simply decide how this will be handled. “We have got employees, there are jobs”, he affirmed. So things have to be wrapped up in order to let the companies resume their businesses in the country.
At the moment, the next hearing was already scheduled for November 20, possibly after the government has already operated on the matter. It looks like the issue is going to be solved soon as the Supreme Court will possibly reach a conclusion even without the cooperation of the government.
The Crypto Ban
Back in April, the RBI has ordered all banks in the country to resume their connections with crypto clients which stopped the exchanges from the country to be able to deliver their products in INR. This has caused major issues and many companies were shut down because they were not able to pay their clients.
The issue continues to be controversial in the country and there are reports that the government may even want to ban cryptos that are not regulated by the government from being held by citizens.
As things only get worse, the Indian city of Bangalore has recently apprehended a crypto ATM that was owned by Unocoin and arrested the owner for offering this service.
The laws are somewhat ambiguous, however, so it remains to be seen how these issues will actually be able to be solved with time. If the government actually has a positive response in the future, there is some hope for clearing all these problems and creating a healthy environment for crypto trading again in India.