On April 2018, the Reserve Bank of India (RBI) banned Indian banks from dealing with cryptocurrencies and business dealing with cryptocurrencies. This led to the cryptocurrency businesses being disrupted in India. But last month the Supreme Court of India gave the RBI 4 weeks to develop a framework to regulate cryptocurrencies, and the 4 weeks end on 29th March.
It’s being widely speculated in the Indian cryptocurrency markets that the RBI would provide a legal framework for Bitcoin and other cryptocurrencies after 29th March. Although it won’t be legal right after 29th March, if all goes well, a timeline for the legal framework would be in place.
The usage of cryptocurrencies is not banned in India, but just that Indian banks are not allowed to deal with cryptocurrencies. Hence it falls under a regulatory grey area. Over the Counter (OTC) trading is still active in India.
The legality of cryptocurrencies in India is led by Finance Secretary Subhash Chandra Garg. He is said to have come to a consensus on not completely dismissing cryptocurrencies as illegal methods of payment.
According to a story reported by New Indian Express, an official at the committee who asked to remain anonymous, said:
“We have already had two meetings. There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on. We will have more clarity soon.”
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