Home News Legal Indian Government Keeps the Cryptocurrency Community on Toes

Indian Government Keeps the Cryptocurrency Community on Toes

August 08, 2018 11:02
Source: Jagran Post
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As the Indian crypto community may be aware, in April this year, the Reserve Bank of India (RBI) sent out a circular instructing banks to stop providing services to cryptocurrency exchanges that are based out of India. The banks were given three months to wind up their businesses with the exchanges.

Naturally, that built an outrage and the exchanges one by one took the RBI to court in order to seek a stay on the matter or rescind the order completely. However, that has not been successfully achieved, so far.


On the other hand, earlier this year, the government had announced that it would be constituting a committee to study cryptocurrencies and file a draft on regulations by July. The month has come and gone but so far there has been no word on the draft so far.

However, instead of sitting still, some in the cryptocurrency community have taken matters into their own hands and filed numerous Right to Information Act (RTI) applications.

Crypto-News India had also filed an application seeking clarity on the matter. But the response we received was at best vague and at worst, an evasive tactic. The reply to us said, “It is apprised that A Committee under S(EA), with members from MeiTy, RBI, SEBI, has been constituted to look after various issues related to VCS.”

What we don’t understand is what is the S(EA) committee mentioned in the reply. What does it stand for? Is it the mysterious committee that is responsible for preparing the draft on regulations?

Apart from us, other groups also filed their RTI, asking the government details on the committee and the date by which the regulations draft will be ready.

Bitcoin India, a telegram group said this on their channel, “An inter-departmental group was constituted by the Reserve Bank of india in April to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency within the country. Progress is being made on it and now it is engaged in talks with RBI, SEBI and other stakeholders and final guidelines will be released by the first week of September.”

This news comes as welcome relief to the community as the Supreme Court has announced that the final hearing on the RBI V/s  crypto exchange case will take place on September 11.

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A blockchain enthusiast, a wannabe-crypto investor and an all-around enthusiast! Loves travelling, especially to ASI-protected areas, believes in giving her best shot at everything she does! Definitely an introvert.


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