After months of constant signalling, India went on to deliver the world of cryptocurrency a huge blow in April. The country’s central bank have decided to close down bank accounts if they are being used by cryptocurrency exchanges. They are doing this to their users and they are giving them three months warning as a result. It’s safe to say that they are inching towards the end of the road, but there is no telling what is going to happen next. A lot of people have been wondering what brought all of this on, but now it has been revealed. Some thought that it was due to the consulted laws from the central banks or even the fact that they were following the behaviour of other countries, but the truth is that none of this happened at all.
The answers were revealed by the RBI and this was done via an application. It was filed by Varun Sethi and he is a lawyer that is based in New Delhi. It seems as though the ban was completely arbitrary and that it came into play even though the RBI put absolutely no thought into it. The RBI does accept that there are representatives who have been a part of the ministry-led committees and that these have been formed to come up with regulations for the various digital currencies that are on the market. The problem here is that the government have still not banned the cryptocurrencies in question. This ultimately means that the RBI have been hasty and a lot of Indian cryptocurrency exchanges believe this. Since April, a lot of exchanges have dragged the central bank into the top court and they are all still waiting for the clarity that they need. They believe that the RBI is coming out with weak replies and that they hope that this will give their case some weight. They also believe that this can be presented in the supreme court if they are able to provide a supporting document against the ban.
When they came out with the ban, this had huge consequences but they didn’t actually do any good amount of research. It looks as though the whole thing was based on a superficial decision and that there are other countries who are not comfortable with the currency and have banned it as a result. India however, is not one of them. Other countries aren’t fully accepting of the currency idea so they have gone back to the drawing board to try and find ways to make everything happen for everyone. India however, is not one of those countries.
Sethi now plans to try and file another RTI plea so that they can find the answers that they need from the central bank. They are failing and now they are going to try and meet up with other RBI officials. They are doing this so that they can hope to understand their perspective, but if both of these avenues happen to fail then it is more than possible for this to reach the supreme court. There are around three million users of cryptocurrencies in India and it hurts them as much as it damages the exchange. Things like this happening aren’t good for anyone, and that is why some people are planning on launching their own cryptocurrency exchange as soon as they possibly can. Of course, only time will tell if this whole thing can actually ever come to light and it’s important to keep a close eye on this entire situation.