Since 2013, the Reserve Bank of India (RBI) gives cautionary advice in the public interest. In the first warning of the Central Bank says that the creation, trade and use bitcoins as means of payment is not authorized. The second warning emphasizes that the regulator does not allow businesses or companies to work with cryptocurrency. The third one warns about the risks associated with the ICO.
Then the Ministry of Finance has established a multidisciplinary Committee, which was appointed to study regulatory framework for virtual currencies. The Committee included representatives of various government departments, in particular, stock markets of India and RBI. Act on the establishment of the expert Committee has also pointed out that the government is ready to regulate the use of cryptocurrencies in the interests of all market participants.
2017 was the year of the ICO, and the price of bitcoins rose to $21 000. As a result of rising prices and the huge profits received by investors, bitcoin has become the most discussed topic. With the growing popularity of cryptocurrency, the cases of fraud and crime in this area, and public activists began increasingly to appeal to the Supreme court of India.
The first litigation (PIL) in this instance initiated dalmy of Vijay PAL, who demanded to prohibit the sale and purchase of cryptocurrencies in India. RBI was called to the consideration of the issue and the transfer of its decision on the application within a certain time. However, instead of clarifying their position, the RBI declined to answer, providing information about the appointment by the Ministry of Finance of the interdisciplinary Committee.
Then there were other judicial proceedings, during which the activity with cryptocurrency and its attendant platforms were intended to invalidate. The latter procedure associated with cryptocurrency investors, started in November 2017 and is still ongoing. We are talking about banning organizations to provide services to any person or entity involved in cryptocurrency. As a result, investors will not be able to transfer money from their Bank accounts in cryptocurrency wallets.
Judicial officials said that the cryptocurrency must either be governed by a legislative framework, or be completely banned. However, the government of India and has not designated the Supreme court of its position.
The Association of Internet and mobile communications (IAMAI) of India has also filed an application to participate in the ongoing litigation, since the Supreme court’s decision will affect her interests and therefore she should be allowed to promote their position on this issue.
There is a strong likelihood that a new notice of RBI will be challenged in Court. Thus, parties with competing interests to deal with the Supreme court, and the outcome will determine the future of cryptocurrency in India.
The atmosphere in social networks suggests that the cryptocurrency community is hoping for a favorable Supreme court decision – they are quoting the anti-virus industry pioneer John McAfee, who said that to stop things like bitcoin, impossible – he would be everywhere, and governments will have to readjust.