The Reserve Bank of India denies banning cryptocurrencies

The Reserve Bank of India denies banning cryptocurrencies
Written by:
Ali Raza
March 11, 2020
  • The Reserve Bank of India (RBI) recently stated that its 'crypto ban' is not really a ban at all, as it cannot forbid trading or the use of digital currencies.
  • In a document submitted to Indian Supreme Court in September 2019, the bank claimed that its 'ban' only includes institutions and entities regulated by it.
  • The order states that no entity regulated by the RBI is allowed to deal with cryptocurrencies, nor to provide services to others who might be dealing with them.

India is at an important crossroads right now, with a court case of the Reserve Bank of India vs Crypto being underway. As many likely remember, the RBI decided to issue a ban on cryptocurrencies in the country some time ago, and now, crypto supporters are trying to convince the court to reverse the decision by making a powerful case for cryptos, their use cases, potential, and alike,

However, in a new development, the RBI pointed out that it did not “ban” cryptocurrencies within the country. It simply notified entities regulated by it that they are not allowed to offer crypto assets in the country. According to the RBI, this is hardly the same as issuing an overall ban on digital currencies.

RBI vs Crypto continues with a new revelation

The new development was reported by the Economic Times of India, which published an article on January 21st, citing a document that the bank had submitted to the Supreme Court of India back in September 2019. The document states that the bank had directed all entities regulated by it to not provide services to anyone who deals with crypto, regardless of whether they are an individual or an entity.

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The crypto drama in India has been going on for a long time now, ever since the RBI originally issued its ‘crypto ban,’ back in April 2018. Back then, the bank stated that it had observed high risk associated with cryptocurrency, which inspired the order not to work with anyone who deals with crypto.

However, many in the country believed that the bank overstepped its authority, and the Internet and Mobile Association of India (IAMAI) — a non-profit organization dedicated to helping digital growth — rose against it. The group petitioned for the decision to be reversed, which finally led to the Indian Supreme Court, which held hearings for the better part of the last week.