The Central Government of India has been called over by the Supreme Court of India to voice their views about cryptocurrency within two weeks.
This move by the Supreme Court happened after the petitions that were filed against the April 6 RBI circular.
The circular restrained banks or related entities from providing banking services to businesses operating on cryptocurrency, which mainly applied to cryptocurrency exchanges.
There has been no ban, either on cryptocurrency trade or the operations of cryptocurrency exchanges in India. However, RBI discourages that public from using these exchanges and services.
Nakul Dewan, the counsel for nine cryptocurrency exchanges, stated the RBI had stopped virtually all trades that are based on Bitcoins despite the absence of any official ban on it.
Cryptocurrencies were banned in nearly nine countries. However, there are jurisdictions in China and Europe that allow it.
Dewan opined that the government should give a final shape to the issue. He further added, “There are jobs. We have got employees.” He said that the issue has been around since May.
Shyam Divan, the RBI counsel, stated, “The banking regulator stated that it was a policy decision and the government should take a call.” He further opined that the banking regulator was only trying to discourage the use of cryptocurrencies.
The Supreme Court bench of Judges, RF Nariman and Naveen Sinha” further required the government to present their views on this matter before the court in 2 weeks.
Meanwhile Debjani Gosh, the president of NASSCOM, the National Association of Software and Services Companies, according to a report from Hindu was cited as saying that cryptocurrencies are illegal from the perspective of NASSCOM.
When talking about the illegal status of cryptocurrencies, Ghosh stated, “It is the law of the land, we have to work with it.” Further stated, “If we do not agree, we have to go back to the government, and we have to speak about why cryptocurrencies are not correct.”
Gosh further opined, that the government is not in touch with innovation and that is one reason for why they have declared the cryptocurrencies as illegal.
The flow of words of the opinion read thus: “The genesis of this problem, however, lies in the failure of policy-making not keeping in pace with rapid technological innovation and changes. NASSCOM’s focus would be to state, how do you synergize technological development and policy making. I think that will be our focus.”
While cryptocurrency is currently legal in India, in July, the Reserve Bank of India (RBI) banned the Country’s Banks from serving the cryptocurrency exchanges stating that there are risks concerning the financial stability and the security of the investors.
While it was not an outright ban on the cryptocurrency industry, the action of suspending banking activities caused enough operational hurdles to the industry. A raft of petitions are being heard in the supreme court from related businesses. The arrest of Bitcoin ATM owner is another proof of complications in running cryptocurrency business in India.
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