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Indian Government: Crypto Regulation Framework is in The Final Stages

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Cryptocurrency Regulation

After getting a full month time to produce crypto regulation, the Indian government has confirmed to the country’s supreme court that it is currently in the final deliberation stages.

The four-week requirement by the supreme court on India’s government was set to enable the court to hear a petition by lawyer Jaideep Reddy against the crypto banking ban placed by the Reserve Bank of India.

The Final Stage of Crypto Regulation

On Monday, the Indian supreme court heard the crypto case very shortly. Jaideep Reddy represented the Internet and Mobile Association of India (IAMAI) in its writ petition against the crypto banking ban by the RBI. While speaking to news.Bitcoin.com, Reddy revealed yesterday that “the matter was heard for a very short period of time”. He elaborates,

The matter started with the counsel for the Union of India stating that its committee is in the final stages of deliberations and that the matter should be heard after that.

Court postponing hearings

The petition was supposed to receive a hearing from the court last year. But it was delayed after the court sited that it was busy with other cases.

In fact, after a series of postponements, very few crypto enthusiasts in India expected a prompt response from the Supreme Court. Finally, the case received a hearing on January 17th. On that day, the Supreme Court gave the government committee four weeks to come up with a cryptocurrency regulation.

The court states that,

Upon hearing the counsel the court made the following order … Four weeks time is granted, as a last opportunity, to the Union of India to do the needful.

The crypto banking ban by the RBI went into effect on April 6th last year. The ban restricted all transactions among crypto-related businesses under the control of India’s central bank. This decree by the RBI affected a good number of the cryptocurrency exchanges in the country including major players like Unocoin.

According to reports, the CEO and co-founder of Unocoin, Sathvik Vishwanath, confirmed that trading volumes significantly slowed down since the ban. That especially happened because of the “hurting sentiments of the present users”. Another reason is the restriction from joining the platform as experienced by new users.

Unocoin is a member of the IAMAI, a non-profit organization represented by Reddy.

Petitioners pushing for a regulatory framework since 2018

The IAMAI previously tried to sway the decision of the central bank. They aimed to educate the RBI on how cryptocurrency and Blockchain works. After these attempts failed, the organization filed a petition in July 2018.

The Indian government has been working on a regulatory framework for cryptocurrencies. However, the finance ministry has reportedly been slow to act due to the cautious nature of the matter.

In the meantime, crypto exchange companies in the country have been looking at other alternatives such as peer-to-peer services. That is now growing more popular in the country.

What are your thoughts on the final regulatory framework? Will the supreme court finally lift the RBI ban? Share your thoughts in the comments section below.

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