A lawyer specializing in ‘blockchain‘ named ‘Varun Sethi,’ filed a Right to information request with the RBI following a ‘report‘ by the native media outlet the ‘Economic Times’ earlier in April that ‘suggested‘ that the government departments have backed a complete ban on the “sale, purchase and issuance of all sorts of crypto assets.”
Although the RBI refused to answer a number of Sethi’s queries, but the bank confirmed it has had no communication from central government regarding the proposed law – and added that it had not received any copy of the draft bill.
Moreover, the bank refused to be drawn in on whether it was the relevant authority to pass a decision on the ban of ‘cryptocurrencies‘. However, the RBI added that it has not supported such a ban to any govt. department, and it had also not received any written communication to suggest a govt. department supporting such a move.
Sethi asked whether it was possible that such a draft bill might be passed without the consent of the RBI, however the bank declined to answer.
The RBI’s played a vital role in managing cryptocurrencies and blockchain, as well as offering recommendation’s to the investors.
Earlier in April, the organization ‘revealed‘ a regulative sandbox that would enable blockchain products to be tested on a small number of users, but crypto assets, exchanges and ICOs [Initial Coin Offerings] were excluded. The decision ‘prompted‘ lobbying teams to urge the RBI to re-think.
The world’s 2nd-most popular nation has been very ‘slow‘ to take a stand towards regulating cryptocurrencies and therefore the uncertainty has resulted within the ‘closure‘ of a number of Indian exchanges.