The stand of Indian government agencies remains divided on cryptocurrency, and therefore there is a lot of uncertainty about the fate of digital currency.
It is known that the Reserve Bank of India imposed the ban on crypto coins earlier this year anticipating that this would affect the control of the government over the market. On the contrary to this, one of the news outlets has alleged that RBI is now urging the Supreme Court for regulation of crypto coins.
According to Coin Telegraph, the senior advocate of RBI Shyam Divan mentioned to the bench headed by Chief Justice Dipak Misra that cryptocurrency regulation is necessary. He further added that this is the way to rope in black money in the market. Such unregulated means of trade will encourage illegal transactions in the market which is very harmful as it can impact the flow of money at the global level.
These issues are being examined by the advisory board headed by the secretary of economic affairs, Subhash Garg who is going to prepare a regulatory draft for the cryptocurrency. It is said that the RBI will require a time period of at least 3 weeks in order to respond the several appeals on the regulations.
Supreme Court’s Decision On Cryptocurrency
The battle between RBI and cryptocurrency traders is still on and the final hearing is scheduled for September 11. Investors filed a petition in the Supreme Court against the ban imposed by the RBI according to which the crypto transactions were prohibited by all financial institutions.
The ban enforced on crypto trade suddenly faced a backlash from the crypto community. Crypto enthusiasts begin an online petition in order to protest against the decision which received over 44,000 signatures.
In another update, it is also mentioned that the Law Commission of India has recommended that the crypto coins should be used as a commodity in the legalized sports betting. However, nothing has been finalized about it and is yet to be figured out by the government agencies.