Central Bank of India has recognized the need to regulate the cryptocurrency market
The central bank of India called for the first time to begin regulating the local cryptocurrency market during a Supreme Court hearing on Friday, a few weeks after it itself imposed restrictions on the activities of cryptocurrency companies. Writes about it CCN.
In April, the Reserve Bank of India sent out a letter banning all regulated financial institutions, including banks, from providing services to companies operating in the cryptocurrency sector. He also banned local banks from conducting transactions that their customers can use to buy cryptocurrencies..
On this fact, a public interest case was initiated, the organizers of which claim that the country’s parliament is responsible for resolving such issues. The Reserve Bank of India later admitted that it had imposed restrictions without conducting any research or consultation..
Last week, the Supreme Court decided on another postponement of the date of the final decision and scheduled the next session for September, citing the irrelevance of the arguments presented. At the same time, a central bank lawyer acknowledged the need to regulate the cryptocurrency sector, which was evidence of significant progress in relation to what the regulator talked about earlier..
According to Financial Express, RBI special adviser Shyam Divan said before the panel of judges about the need to regulate bitcoin and other cryptocurrencies in order to prevent “illegal transactions” in the country. Attorney General of India also stressed the importance of the petition and the case in general..
According to a local official, India may recognize bitcoin as an exchange commodity, allowing it to regulate cryptocurrency in the same way it regulates traditional financial instruments..