Delays to requests for information about the regulations imposed to the cryptocurrency industry may be time for legislators to finalize the bill regarding this matter
The government of India would have imposed a strict regulation towards cryptocurrencies since mid-2018, in which it would prevent financial organizations and institutions from conducting negotiations or transactions with crypto assets. For this reason, the government wants to prevent this regulation from being eliminated.
As it is well known, in mid-2018, the country’s largest financial institution, the Reserve Bank of India (RBI), issued a statement that required banks operating in the country to complete all relations commercials with companies linked to cryptocurrencies. Hence, all economic activities linked to crypto assets had to cease all their negotiations.
In spite of this requirement imposed by the government of the Asian country, the Minister of Finance of the nation denied that there was a law prohibiting cryptocurrencies. But they explain that using cryptocurrencies is illegal because it lacks of an adequate regulation. However, by that time the circular issued by the RBI said something about it.
“Reserve Bank has repeatedly warned users, holders and merchants of virtual currencies, including bitcoins, about the various risks when dealing with such virtual currencies. In view of the associated risks, it has been decided that, in immediate effect, the entities regulated by the RBI will not treat or provide services to any individual or commercial entity that deals with or liquidates in VC. Regulated entities that already provide these services will leave the relationship within a specified time”.
Since the publication of the document, a series of requests have been introduced to the Supreme Court of Justice, in which the government asked for detailed information regarding the decision and statutes, mechanisms and limitations of the regulation. However, despite the insistence of many institutions, the hearings referred to the case have been postponed without explanations. There are five petitions made by various institutions to the highest Court of Justice and they have not had any clear answer for the case.
Due to the postponement of the information request hearings introduced by the financial institutions to the highest courts, many users and citizens showed their dissatisfaction against the government through the use of the social network Twitter.
On the other hand, experts in the crypto industry and business people commented that these delays in legal matters, which have been going on for more than a year, are due to the great uncertainty about the bill that would regulate the business of cryptocurrencies, as well as others recent reports.
This may mean that legal bodies are giving legislators time to formulate a law that is not contradictory to decisions already made. This is based on the multiple requests for information made by several people and institutions, leaving one of the universal principles of due process related to the speed of justice in question.
Therefore, the country wants to keep these regulations maybe with the aim to protect its users, as much as possible.
By María Rodríguez