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
6040 Total Views

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.”

No Comments
Coinbase Should Add XRP says Ripple CEO, Mr. Garlinghouse

Ripple CEO Mr. Brad Garlinghouse says Coinbase Should Add XRP CEO of Ripple Labs, Mr. Brad Garlinghouse, the company that oversees the development of  XRP, the $18 billion blockchain network, has stated for the first in public that Coinbase should integrate XRP, the native digital currency of the ripple network. …

Phil Potter, Chief Strategy Officer of Bitfinex Leaves the Company

Bitfinex’s Chief Strategy Officer Leaves Crypto Exchange According to Reuters report, Phil Potter, who is one of the directors of ‘stablecoin’ issuing company Tether, will be replaced by Jan Ludovicus van der Velde, Bitfinex’s CEO. Phil Potter said to Coindesk: As Bitfinex pivots away from the U.S., I felt that, …

Financial Services Agency (FSA) has sent Business Improvement Orders to Six Major Cryptocurrency Exchanges

Japan Targeted 6 Licensed Cryptocurrency Exchanges with Business Improvement Orders Japan’s financial regulator the Financial Service (FSA) has sent business improvement orders with six major cryptocurrency exchanges. As stated in press releases in their website, the FSA has demanded a risk management redesign – focused on anti-money laundering (AML) and …

Ripple Price Prediction says XRP to become close to $10 as the Potentiality

Ripple Price will Reach $10 says  Roman Guelfi, a Respected Crypto Expert Being the third largest cryptocurrency in the world, the Ripple has been experiencing price slump. Even though after hiring Cory Johnson, Ripple’s new head market strategist, XRP still seems to be struggling to raise in terms of value. …

Bahamas Central Bank to Start Pilot Cryptocurrency

Central Bank of Bahamas to Launch Pilot Digital Currency As per Jamaica Observer report, Bahamas Central Bank is planning to introduce a government-backed pilot cryptocurrency. Talking at the Bahamas Blockchain and Cryptocurrency conference prior this week, Deputy Prime Minister and Minister of Finance of the Bahamas, Mr. K Peter Turnquest, …

Four Arrested for Running Fake Crypto Exchanges in Ukraine

Ukrainian Police Arrested Four Men for Running Fake Crypto Exchanges As per a report on 21st June, Ukrainian Police have detained four men suspected of running six fake crypto exchanges. All four aged between 20 and 26 purportedly started at least six cryptocurrency exchanges, where they deceived users, afterward stealing …

Press Release