The Strategist

India refuses to postpone the cryptocurrency ban

07/05/2018 - 12:07

The Government of India decided to keep a complete ban on the use of crypto currency in the country. Earlier, this ban was issued by the Central Bank of India to all financial institutions. Some financial companies have appealed to the Supreme Court with a note of protest to appeal the decision of the central bank, but the central bank rejected the appeals.

Sisheer Philip
Sisheer Philip
In yesterday's ruling, the Supreme Court of India said it would not grant a reprieve for the central bank's prohibition on banking services for services operating in the crypto-currency industry.

In April, the central bank of India extended the directive to all financial organizations that are subject to regulation, including banks. Now, they cannot provide services to enterprises in the crypto currency sector. Banks were also obliged to stop providing their retail customers with the opportunity to purchase crypto-currencies through their bank accounts. The department’s official decree that prohibits digital money takes effect on July 5, CCN reports.

This step has predictably raised the alarm in the country's crypto community. Some services filed a petition with various courts of the country to challenge the central bank, stating that the policy was "arbitrary, unjust and unconstitutional."

Representatives of a legal organization that represented interests of local crypto-currency exchanges said that the participants in the process asked to postpone the moment of the ban’s introduction for a month. But now, after the ban has been approved, the banking channels for the crypto-currency traders and their clients have been closed.

The Government of India explains that crypto-currencies cannot be considered a category of money since money has to have material properties. Only coins and bills can be recognized as currency on the territory of India.

Last week, CCN informed that a representative of the Department of Economic Affairs of India, Subash Chandra Garg, stated that the authorities are getting closer to finalizing the rules for the crypto-currency sector. Another representative of the government, who heads the intergovernmental committee for the policy development of the industry of the crypto-currency, confirmed that the rules can be finalized in the first two weeks of July.

"We are already close to promulgating crypto-currency regulation, which, in our opinion, will meet the interests of India. We drafted a bill that we are going to talk over with the members of the council during the first half of July, " the head of the interdepartmental council on the regulation of crypto-currencies said.


< >

Thursday, May 30th 2024 - 09:40 British parliament dissolved ahead of elections