The supreme court of Indian has set a two-week deadline for the government to present an official statement on cryptocurrencies. This news was reported by Economic Times, a popular Indian newspaper.
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The court ruling
After several delays, the court ruled on the petitions filed the cryptocurrency community in India. This came after a prohibition by the Reserve Bank of India on banks engaging in crypto as well as crypto related businesses in April this year.
The counsel for nine crypto exchanges, Nakul Dewan, stated that even though the reserve bank didn’t place an official ban on digital currency, the exchange and trade of bitcoin has been discouraged. It has frozen engagement with cryptocurrencies in the country since the situation is still unclear.
RBI’s counsel responded to Dewan’s plea for clarity by telling the court that the central bank planned to discourage the use of digital currencies, but that the government had the final say on the status of cryptos via its policy decision. According to ET, the court has asked Indian officials to return with their stances within two weeks.
Seven months of uncertainty
A team of lawyers from India who publish Blockchain and crypto regulation news also published a report like this a few days ago:
“Counsel for Union of India apprised that Committee is going to come up with a report on Crypto. Court has directed the Govt. to file Counter Affidavit within 2 weeks.”
The country has seen close to seven months of uncertainty following the initial announcement of the RBI in April. During this time, banks stopped supporting services to legal entities or persons involved in crypto trading.
A few days after the move of the RBI, a public petition was filed by members of the cryptocurrency community in India. This group was able to generate more than 44,000 signatures of its 50,000 goals. The petition urged the government to cancel the embargo. Later in the year, crypto businesses filed a formal complaint against the RBI and the Supreme Court upheld the ban. However, the hearing was scheduled for July and as postponed again.
This pushed some Indian entrepreneurs to see cryptos as an outlaw. Recently, Debjani Ghosh, president of the National Association of Software and Services Companies stated that cryptos are illegal because the government cannot keep up with its innovations.