The cryptocurrency situation in India has just received a new twist after the country’s Supreme Court demanded that the Government presents its stance on crypto. The government has received a two-week deadline to decide the stance, and decide whether cryptocurrencies should be legal or not.
Crypto Matter heard today in Court no. 8 as item no. 19.
Counsel for Union of India apprised that Committee is going to come up with a report on Crypto.
Court has directed the Govt. to file Counter Affidavit within 2 weeks.
Matter to be listed after 2 weeks now. #RBI
— Crypto Kanoon (@cryptokanoon) October 25, 2018
The move came after the court received numerous petitions from Indian exchanges, as well as other crypto-related business groups. This is a result of the central bank’s decision to ban all other banks from dealing with crypto businesses. The decision was originally announced in April 2018, and it crippled numerous businesses and individual traders alike.
So much so, in fact, that a lot of businesses had to either close down shop or relocate to other countries. Those that remained in India have decided to take the RBI to court, and the consequences are finally being felt.
It’s up to the government now
However, despite the fact that dealing with cryptocurrency businesses is banned, owning cryptocurrencies is still not illegal. The RBI has spent years issuing warnings against dealing with cryptocurrencies, starting in 2013. However, they have never gone as far as to actually proclaim cryptos illegal, and they refused to give their stance on the matter when asked to do so. Instead, the bank argued that this is something that the country’s government itself should decide.
Now, the legal counsel that represents nine exchanges demands the decision, and India’s government is the one that has to make it. Considering that all of these exchanges are providing jobs for numerous employees, and the fact that many in India depend on crypto trading in order to provide for their families, it is understandable why the decision is necessary.
Furthermore, recent reports claim that co-founders of Unocoin, India’s largest exchange, were recently arrested for installing an ATM for cryptos in Bangalore. Because of this, the decision regarding the legality of digital assets is more important than ever. For these reasons, the Supreme Court decided to react and bring the legality debate to an end.