The country’s apex bank; Reserve Bank of India wants to put a ban on cryptocurrency trade in the country. In a notice issued, a few months ago, RBI has asked the banks to stop providing services to crypto businesses. Banks subsequently went down to shut local cryptocurrency exchanges. Many cryptocurrency users filed a petition and took the matter to court. They have challenged this imposition of the apex bank. According to the latest bitcoin news, the Supreme Court of India is looking into the matter.
Important arguments till now in the case.
Supreme Court has a committee of judges to assess the validity of such a decision by the bank. The court hearings are still going on. Various arguments have been heard and the central bank’s power over cryptocurrency is extensively challenged as per the latest bitcoin news. Court has directed several questions to RBI put forth by detailed reports of the cryptocurrency exchanges. These exchanges are against the blanket ban of cryptocurrency trade in the country and have suggested ways to regulate the exchange of cryptocurrency. Amidst the ban by a central bank, the government has recently come out with a draft bill; ‘Banning of Cryptocurrency and Regulation of Digital Currency Bill 2019’. This bill proposes fines and punishments for people trading cryptocurrency in the country. However, this bill allows for the utilization of this currency for research and training purposes.
The blanket ban on cryptocurrency is pushed by the government and the central bank but the Supreme Court of India is in the process of examining the legal framework of virtual currency. Cryptocurrency is not banned legally as of now.