The controversy regarding cryptocurrencies and their management in India continues. In the latest development regarding the matter, the nation’s Supreme Court has heavily criticized the Central Bank because of its handling on a crypto business ban and has issued an order for it to attend the resulting complaints.
According to Supreme Court Justice Rohinton Fali Nariman, the Reserve Bank of India, or RBI, has not successfully addressed concerns from the crypto actors in the country over its decisions. There are still ongoing hearings centering on the central bank’s actions, and the judge’s remarks came in the latest session.
A Controversial Decision
The controversy stems from the Reserve Bank’s decision to forbid financial institutions in India from servicing crypto platforms and operators in July 2018. Among these actors, for instance, are crypto exchanges. That decision, basically, put a halt on these ecosystems and stopped from functioning in India.
Advisory resource Crypto Kanoon was at the hearing, and states that Nariman provided the Reserve Bank of India with only a couple of weeks to come up with a justification for its controversial decision, one that has affected several actors in the country including platforms, exchanges, traders, and potential investors.
“Now justice Nariman questions RBI why you have not properly responded to the representation. You just said that we are forwarding to Govt. Angrily says this is not an answer,” per a Twitter update regarding the delicate situation.
An “Unpredictable Turn”
Whilst talking about the result of the hearing, now finalized, Crypto Kanoon stated: “Case takes the most unpredictable turn. Justice Nariman directs that RBI must respond to the representation in the manner appropriate. Offers to defer the case for 2 weeks as part heard, let the answer come on reconsideration of banking ban by RBI. RBI has agreed.”
The information clearly states that whilst it may not agree with the situation, the Reserve Bank of India has actually agreed to cooperate and will justify its actions and decision in a span of two weeks, just as it was ordered by the Supreme Court.
The whole situation is popping up in a rather controversial moment. Cryptocurrencies are becoming mainstream and they are used all around the world as payment methods and a way to store value, and whilst other nations are enjoying trading platforms and crypto-related products, the theme is still sensitive in India.
Will India Restrict Cryptocurrencies to all Citizens?
As a matter of fact, the government of India is actually mulling the possibility of restricting cryptocurrencies and making them illegal for all citizens regardless of the outcome of the Reserve Bank of India – Supreme Court situation.
Just a few weeks ago, in July, a committee of government members provided a recommendation for Delhi to ban all existing tokens, with the notable exception of the official digital version of the rupee, the nation’s currency.
Experts around the industry have estimated that India stands to lose a market that is currently worth nearly $13 billion if the government’s intentions come into fruition and the ban becomes official.
By Andres Chavez