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Cryptocurrency Market Update: Virtual Coins Are Not Validated To Be Used In Indian Payment System

Indian cryptocurrency market will be facing eminent government organizations in the Supreme Court over the long impending battle on the ban of crypto trade. The recently filed affidavit in the court revealed that the Reserve Bank of India (RBI) holds the authority to notify instruments as convincing currency but they must feature similar characteristics such as postal orders, money orders, and cheques. It was filed earlier this week in the court clearing their stand on the entire matter.

According to CCN, it is stated that the Reserve Bank of India cited the provision like the Coinage Act and the RBI Act in their affidavit for explaining their stand on the existing legal frameworks which do not recognize cryptocurrency market and their coins. Therefore, they are not acceptable in the Indian payment system.

The counter affidavit filed by the petitioners led by Sidharth Dalmia and Dwaipayan Bhowmik (India’s monetary regulator) stated that cryptocurrency has no need to be validated in the payment systems as it is working on peer-to-peer and does not require a service provider. (Via News 18)

There is already a petition battle going on in the court over the ban imposed by RBI which was filed by the crypto traders and exchanges earlier this year. The hearing dates have been already pushed twice and the next date of hearing is finalized for next week.

What Is The Future Of Indian Cryptocurrency Market?

Interestingly, RBI has supported cryptocurrency market regulations in one of their previous statements, however, there has a lot to be done to define and establish the regulatory system. Indeed the existing laws in India do not have any provision for crypto coins but with apt regulations and coordination between financial government agencies, it can be brought in.

The Securities & Exchange Board of India (SEBI) had recently organized a study tour for its officials to Japan, Switzerland, and UK for understanding the operating regulations of cryptocurrency market.

[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. ]

Neha graduated in Electronic Media and has worked with Times group for 3 years with an overall experience of 6 years. She is passionate about learning languages and is a certified French Language Expert and IELTS Trainer. Neha writes breaking cryptocurrency news stories for OWLT Market.

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