The Reserve bank of India has finally confirmed that cryptocurrency is legal in India. RBI stated this statement in the latest supreme court hearing on the case of cryptocurrency. Moreover, RBI said that “Crypto is not banned in India.” This staement was given during central bank’s reply to the IAMAI. RBI also clarified that it monitors, such as banks, from risks associated with trading cryptocurrencies.
RBI presented a clarification on the case of cryptocurrency on 30 paged document. This document read that “The Reserve Bank of India has said it had not banned cryptocurrencies such as bitcoin in India, but only ringfenced regulated entities like banks from risks associated with the trading of such virtual instruments.”
The IAMAI (Internet and Mobile Association of India) has features which incorporate cryptocurrency trades. IAMAI had filed the case in the SC against the action of RBI. In a hearing earlier this month, IAMAI pleaded that trading in cryptocurrencies, in the inadequacy of a law forbidding those, was a lawful business activity. Still, the RBI had banned entirely it by preventing access to the banking sector.
The 30 also paged RBI affidavit stated, “Any possible avenues which facilitate anonymous cross-border fund transfer have to be acted upon swiftly and stringently dealt. It is an admitted fact that VCs have been used to purchase illegal and illicit goods. These range from guns and ammunition to drugs.”
Cryptocurrency Bill Still Not Drafted In Parliament
Moreover, the Indian government is still pondering over the draft bill. This bill was to get drafted in 2019 seeks to ban cryptocurrencies, except state-issued ones. The draft bill seeking a ban on crypto in the upper parliament isn’t presented till now. Earlier the central bank supported its banking constraints on cryptocurrency. They challenged that crypto activities “pose reputational and financial risks along with other legal and operational risks.”