India’s Central Bank Admits Issuing Crypto Ban without Research

Chirayu Choubisa

Chirayu Choubisa

June 13, 2018 11:32 am

India's Central Bank Admits Issuing Crypto Ban without Research | Coindelite News
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Reserve Bank of India Stays Mum on Cryptocurrency Ban

The Reserve Bank of India (RBI) has replied to a query regarding why it moved to bar bank from dealing with digital currency businesses prior this year – however; the response isn’t very telling.

Shri Varun Sethi, who presents himself as a Blockchain Lawyer demanded an explanation from RBI under the nation’s Right to Information Act (RTI). As per the answers provided, the decision didn’t result from any special research or deliberation by the regulator.

For instance, officials aid “no” when asked whether the RBI had convened a commission to examine the nature and risk of blockchain technology. And during past publication from the RBI reference report regarding the use of digital currencies for illegal uses, the central bank refused to identify which ones it pointed to.

It further declines to explain if there were any expert opinions solicited on the matter if RBI has gathered any information on any digital currency exchanges in India and if officials made any attempt to draft a framework for dealing with digital currencies within the national bank system.

To all these questions, the bank responded that this information doesn’t come under the Right to Information Act and it doesn’t have to answer.

The latest twist comes months after bank officials in India told that the companies it regulates can’t deal with digital currencies. The questionable announcement has since sparked numerous legal challenges which have made their way to the nation’s Supreme Court.

RBI told at the time that “entities regulated by RBI shall not deal with or give services to any individual or business entities dealing with or settling cryptocurrencies. Regulated entities which already give such services shall exit the relationship within a specified time.”

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