Last April, regulated financial institutions in India where forbidden from providing services to cryptocurrency businesses. This came after a statement published by the Reserve Bank of India, which prohibited dealing in virtual currencies. In response to these measures, a group of cryptocurrency businesses turned to the Supreme Court, requesting this decision to be overturned and arguing that the prohibition was,
“arbitrary, unfair and unconstitutional”,
resulting in a hearing which will be held on July 20th. When asked about the measure in a Right to Information (RTI) request, RBI officials confirmed the authority did not establish a committee to determine the risks of cryptocurrency trading nor did it conduct internal research on the subject. The institution refused to answer any questions in detail, if at all, citing a loophole in the RTI act, exempting them from giving out more information.
According to India Times, a panel formed by the government, with the task of “looking into cryptocurrency”, agrees that a straight-out ban is not the right solution.
“The government panel is not in favor of banning cryptocurrency and may suggest [regulation of] cryptocurrency with riders”,
reported the news outlet. These “riders” come in the form of regulations, which, if put in place, could bring relief to virtual currency investors and businesses in the country, by providing an alternative to the blockade put forth by the RBI.
by Samuel Larreal