According to Indian media, RBI told the Supreme Court that it is important to start cryptocurrency regulation in India as it prevents the “illegal transactions” and encourages international funding.
Earlier in April, the RBI declared that it would no longer offer any banking services to the cryptocurrency-related business, citing high risks. They issued the policy that specifies the banks will freeze the customer banking account from buying cryptocurrency via fiat currency.
The RBI’s senior counselor, Shyam Divan, told the Chief Justice Dipak Misra that it’s really essential to regulate the cryptocurrency to indirectly block the “illegal transactions” in India. In last week hearing, KK Venugopal, the attorney general was also present.
Prior this year, the Indian government has set up a committee to evaluate the country’s cryptocurrency status. According to the news outlet, Subhash Garg leading the interdisciplinary committee, secretary of economic affairs at the Ministry has yet submitted the report on cryptocurrency regulations.
Gopal Subramanium, the senior counsel performing for the petitioners, mentioned that the affair is serious and should be solved at the earliest. He argued that the RBI’s policies that authorized the banks, the online system like wallets, payment providers to take back their support for several business dealers and cryptocurrency exchanges in India was “baseless”.
He continued, “In today’s tech world, transactions are done online and you need banks for that. This issue should concern the government.”
After which the court discarded the stay of RBI’s April 6 policy. At the moment, the banks have shuttered down their support on July 6. The Supreme Court was hearing some more petitions filed by
- The Internet and Mobile Association of India (IMAI)
- RBI’s transfer petition
Considering overall factors, India’s Supreme Court finalized the date of the final hearing is September 11. This day the result will be out from the central bank banking ban against the cryptocurrency industry petition.
The things came to light when the lawyer representing the central bank outlined the necessity of the cryptocurrency regulation. This is the first notable cite wherein the RBI is famous for its regulation as a subject of policy.
Although, there is some buzz going around that the Indian authorities are trying to group cryptocurrency as commodities. This might be a stance to see cryptocurrency trading markets at the same place as the traditional mainstream finance markets.
What do you think will be the result of the hearing for cryptocurrency ban from the Supreme Court? Let’s discuss on Twitter.
Photo By David McBee