Reserve Bank of India unilaterally bans cryptocurrency with zero research

(Last Updated On: June 14, 2018)

The Reserve Bank of India (RBI) may have banned cryptocurrency in that country with no research for its unilateral anti crypto policy.

RBI was said to have ignored questions posed to it for its decision or simply answered ‘No” to cryptocurrency questions that required detail explanation on how it reached its anti-cryptocurrency law.

Reports from India say that the central bank is indirectly admitting it conducted no research prior to its prohibitive action.

There is a Right to Information (RTI) in India, in this regard, a domestic lawyer Varun Sethi quoted by plainly asked for the reasons behind its April ban that explicitly forbade all regulated financial institutions from providing services to cryptocurrency businesses.

Going by the response of RBI, the bank gave little to no thought before reaching the decision.”

There may have been internal research conducted by the bank, but it’s not ready yo reveal further information about its decision.

Also, the bank has not shown its readiness to clarify its position and plainly refused to answer other probing questions put forth in the information request by Varun Sethi.

Varun Sethi asked RBI’s official if the authority established an internal committee to determine if there were risks in trading cryptocurrencies. “No” was the response.

Another question was whether Reserved Bank of India conducted its own research to understand and explore a regulatory framework prior the decision? Again, “no” was the answer.

Has Reserved Bank of India issued any clarifications?

Reserved Bank of India (RBI) has also refused to clarify how it had determined public risks in cryptocurrencies business.

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No response has also been gotten if it’s planning to prohibit Indian citizens from cryptocurrencies trading whether from other exchanges outside the country or within.

India’s body language to cryptocurrency trading in the past has shown that stiffer measures may be put on crypto business in the country.

Is the first time Reserved Bank of India will be issuing anti crypto law?

In the past, Reserved Bank of India has also repeatedly issued warnings, cautioning citizens against trading or investing in cryptocurrencies like bitcoin, the most popular of all digital currency.

Bitcoin price has been moving back and forth for days, zig-zagging between $6K to $6,500.

Decisions of the Reserved Bank of India has culminated into several litigation at state courts arguing that the RBI decision was “arbitrary, unfair and unconstitutional“.

We expect to see more in the days ahead.

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