The Indian Supreme Court has a set two-week deadline for the gov’t to To Define the Policy on cryptocurrencies. This news was reported by Indian newspaper The Economic Times (ET) Friday, Oct. 26.
After a considerably long delay, the Supreme court has urged the country’s government to give clear information about the positioning of cryptocurrency and finally held a hearing for all the petitions filed by the crypto community in the country. The petitions were filed following a prohibition on banks engaging with crypto by the Reserve Bank of India (RBI).
In April 2018, the Reserve Bank of India officially passed an order to every regulated financial entity in the country to withhold from working or providing services to any and all businesses which are involved in the dealing of cryptocurrencies. This resulted in a legal battle between the cryptocurrency ecosystem and the government. India is now only two weeks away from getting a clear direction of crypto as the Supreme Court demands clarification from RBI.
“The legality of cryptocurrencies as such and hence the legality status of Bitcoin or other cryptocurrencies in India remain unchanged. This decision of RBI was more in line with its earlier statements on the risk associated with the cryptos.”
-Co-founder of UnoCoin, Sathvik Vishwanath
two-week deadline for the gov’t to To Define the Policy-Nakul Dewan, the legal counsel representing nine cryptocurrency exchanges urged the government to bring some clarity about the functioning of the crypto market in the country, stating that even though the RBI has not placed an official ban on crypto, it continues to prohibit the trade and exchange of Bitcoin (BTC).
Reacting to Dewan’s demands, the Court, presided by Justices RF Nariman and Naveen Sinha, demanded that the government provide clear positioning of crypto within two weeks.
two-week deadline for the gov’t to To Define the Policy-India’s main regulatory authority: the Securities and Exchange Board of India (SEBI), said that it had sent official teams to various countries to gain and understand the working of the crypto ecosystem.
An official team guided by the finance ministry are involved in studying the working of digital assets. Whether they should be considered commodities or as currency.
Back home, the Indian police in Bengaluru recently seized the country’s first operating Bitcoin ATM. Similarly, Which was launched by India’s oldest cryptocurrency exchange: Unocoin. Authorities arrested one of the company’s co-founders Harish BV. Reacting to this action, co-founder Sathvik Vishwanath said cryptocurrencies may not be legal tender, but not ‘illegal’ tender either