As of recently, India’s central bank has called for regulation of the domestic cryptocurrency sector. It all occurred during Friday’s hearing at the Supreme Court which was weeks after enforcing a banking ban against the crypto companies in the country.
In April this year, the Reserve Bank of India (RBI) issued a circular that banned all financial institutions from offering services in the cryptocurrency sector. The policy also urged banks to stop customers from purchasing cryptocurrencies using fiat funds in their banking accounts.
A public interest litigation (PIL) which was filed in India’s Supreme Court called for regulation of the cryptocurrency sector made the central bank absolve itself of any responsibility in framing a policy.
Last week, the Supreme Court in India finalized a September date as the final hearing against the central bank banking ban. The lawyer who is representing the central bank also underlined the need for this issue to be properly solved – and for the crypto sector to be properly regulated.
RBI’s special counsel, Shyam Divan, said that it was necessary to regulate Bitcoin and other cryptocurrencies in order to prevent “illegal transactions” in the country, as Financial Express reported.
Currently, rumors say that Indian authorities look towards classifying cryptocurrencies as commodities. This would be a move that would see the cryptocurrency trading markets regulated in a similar way like the traditional mainstream financial markets.
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