Indian government working on regulations after court order

Indian government working on regulations after court order

The government of India has informed the Supreme Court of the country that the draft for the cryptocurrency regulations is underway. The government is working on the draft after a deadline was posed by the court following a petition against the blanket ban on cryptocurrency use in the country.

On this Monday, the Supreme Court of India summoned cryptocurrency case. According to Nishith Desai Associates lawyer, Jaideep Reddy said that the actual problem was addressed for a very brief time. He also said that the matter (of declaring cryptocurrencies) should be resolved later, that is after premeditations and negotiations related to Union of India are settled.

Reddy further explained that after government counsel’s hearing, the court summarized discussion by suggesting four weeks delay would be given for the last time. Later, on Monday court stated that the court decided upon granting four weeks duration to do whatever is needed. He also added that the cryptocurrency paradigm will be heard after one month.

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Reddy further told media that in response to the conclusion made by the court, counsel (petitioner exchange) requested to deal with this matter separately and not to mix it with the declaration of crypto in India. It is because RBI is a separate entity and must be dealt with independently. Furthermore, he said that the counsel pointed towards the reality check by mentioning the livelihoods of employees that are being neglected with the passage of time.

Nevertheless, Reddy further added that after listening to the court’s order of handling matter after one month, a circular was issued by the central bank of India in April 2018. It said that banks will be banned to render services to businesses which are associated with cryptocurrencies. It was practiced from July and nobody was allowed to withdraw fiat via accounts in the bank.

An adverse effect was caused by Zebpay which does exchanges in crypto to currencies in India. Each and every activity got shut down. However, to curb the situation exchange-escrow was initiated which propagates the maturity of cryptocurrency.

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