Even though the RBI has banned the transactions of cryptocurrency in India, the government is working on regulations for cryptocurrency to be launched in India. A framework is in the process, a per a high-ranking govt. official, and should be ready by as early as July. On the other hand, the Supreme Court has also agreed to assess the petition against RBI’s ban and has reset the hearing date for the 3rd of July.
According to Subhash Chandra Garg, Secretary of the Dept of Economic Affairs, Ministry of Finance, the framework for the regulation of cryptocurrency in India will be presented and discussed in the first week of July. Another representative of the Ministry of Finance also put forth the fact that the progress that has been made in regards to the future of Bitcoin in India and what part of the platform will be banned and preserved. The Ministry is looking to make a concrete decision about cryptocurrency in India in the first couple of weeks of July.
Though the Indian Government, in previous statements told by Garg, does not regard cryptocurrency as another form of currency, hence the use of cryptocurrency in India will not be for the purpose of paying. However, because of the fact that people will be investing in cryptocurrency, the government will be coming out with regulations and procedures to keep a record of the transactions and legal requirements.
The Indian Government has also issued warnings and has applied restrictive measures on the use of cryptocurrency as they do not recognize the currency as legal and the RBI has instructed banking institutions to not provide any kind of service to businesses and people dealing and using cryptocurrencies, Bitcoin News reported.
Due to this ban by RBI, a number of Indian companies dealing with cryptocurrency in India had filed a petition against these restrictions with the Supreme Court which issued a hearing date of July 20th, two weeks after the RBI ban takes into effect on July 5th. This had led to much distress and some members of the crypto community in India like Coinrecoil and Internet and Mobile Association of India (IAMAI) filed a petition challenging the RBI’s decision. The Supreme Court has now revised the date of the hearing which is now set for the 3rd of July.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]