Indian Supreme Court Issues 2-Weeks Crypto Policy Deadline To Government

The cryptocurrency community in India will be presented with a final decision with regards to the prevailing regulatory frameworks within the country borders two weeks from the date of publishing.

This is based on the deadline given to the Indian government by the country’s supreme court to come up with an official position on cryptocurrencies, as reported by Indian newspaper, Indian newspaper The Economic Times (ET).

The crypto debacle in India has lingered since April 2018 when the nation’s apex bank, the Reserve Bank of India (RBI) prohibited banks from engaging with crypto and crypto-related businesses. This has led to a reasonable extent of capital flight, with establishments like Binance moving their businesses out of the country.

Besides the ones that moved on, there has been lingering cases and back and forth engagements between the government and the cryptocurrency community in India. This has involved a series of legal battles and campaigns in order to find a stable solution to the situation.

The argument in court as reported by ET was between Nakul Dewan, counsel for nine cryptocurrency exchanges and Shyam Divan, representing the RBI. Dewan argued that the stance taken by RBI which in reality is not a total ban on crypto activities has affected the trade and exchange of Bitcoin by discouraging participants. In defence of RBI, Divan affirmed that the central bank actually intends to discourage the public from using crypto, but the final policy decision is up to the Indian government.

Having considered the argument of both parties, the bench of justices at the supreme court has instructed the Indian government to come up with a stance on the lingering issue in two weeks time, as reported by ET.

A clear policy from the government is expected to determine the next direction of the indian cryptocurrency community. This in itself is expected to also have a significant impact on the entire cryptocurrency market, considering the volume of trade and overall crypto participation that emanates from one of the most populated nations of the world.

The impact of the ban in April is still considered as one of the fundamental causes of the persistent bearish trend of cryptocurrencies in 2018. Apparently, a lot of significant players within the Indian market have remained dormant, anticipating the next move for which the government decision and the supreme court’s ruling might play a role.

Regulation in the cryptocurrency ecosystem is a factor that is showing strong representation, especially since after the ICO boom of 2017. Many participants believe that regulation is the key factor that will encourage institutional funds to be applied into the industry. However, the unanswered question remains to what extent can cryptocurrency activities be regulated?

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