Home / Blockchain News / Cryptocurrency encourages “illegal transactions”: RBI to Supreme Court

Cryptocurrency encourages “illegal transactions”: RBI to Supreme Court

On 20th July the Reserve Bank of India (RBI), has proposed from country’s Supreme Court to regulate cryptocurrencies.

This year in the month of April, the RBI announced that it will stop its service to businesses or persons dealing with cryptocurrencies with high risks.

According to RBI, cryptocurrency is motivating illegal transaction matter as this was the point kept by the RBI’s senior advocate Shyam Divan told this in hearing to Chief Justice Dipak Misra that it is necessary to regulate Bitcoin (BTC) and other cryptocurrencies since these “particular means” will “encourage illegal transactions.” this indeed is increasing the illegal activities in India which is not a good sign of growth in India.

There are many issues related to this many pointed out the problem is regarding “immense policy dimensions,” attesting that the crypto is having the potential to impact the black money flows globally.

There were multiple reasons explained by the RBI to come in existence of ban. An interdisciplinary committee headed by the secretary of economic affairs, Subhash Garg, want to set up the regulatory framework for cryptocurrencies, is examining for the issue. The RBI will require three weeks to respond to multiple petitions on the regulations.

The final hearing came up by the RBI’s ban on crypto dealings is scheduled on July 20 — to September 11, the Supreme Court reportedly postponed from July 20-to 11 September.

An online petition was charged by the April crypto-dealing ban received backlash from the Indian crypto community, which includes the online petition filed against the ban of cryptocurrency announcement by the people who are the against the ban more than 44,000 signatures were taken. In May, India’s Supreme Court decided not to grant an interim injunction against the RBI ban sought by eleven crypto-related businesses.

The Supreme Court of India passed an order that no petition will be filed in any Indian High Court against the RBI decision to ban cryptocurrency dealings. Finally, on 5th July, the RBI 3 months deadline came to an end for businesses to withdraw and invest in crypto with the help of Bank, the ‘BAN’ has fully come into force. An unknown person anonymously reported that authorities may plan upon classifying cryptocurrencies as commodities, instead of putting the ban on crypto forever. The final hearing is now scheduled for 11th September 2018.

*You people want a ban on crypto or not share up your thoughts it?


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