A local Indian publication is reporting that India’s Supreme Court has imposed a 4-week deadline on developing cryptocurrency regulations. This has given hope to Indian cryptocurrency aficionados that the regulatory situation in the country might finally become more clear.
New regulations could rescind last year’s circular by the RBI
Specifically, this news comes from the Indian news outlet Inc42. According to the publication, extensive petitions have attempted to get the Indian Supreme Court to revoke a decision by the country’s reserve bank – the RBI – to ban financial institutions from dealing with cryptocurrencies.
This decision was first taken in April of last year, but there has remained much uncertainty regarding how the issue should be resolved. However, the Indian Supreme Court has now reportedly decided to expedite the process.
The Supreme Court has reportedly issued a final warning to both the Indian government and the Reserve Bank of India. Moreover, the warning supposedly dictates that these two actors will need to reach a decision on how cryptocurrencies are regulated posthaste.
In fact, Inc24 reports that the government and the RBI have been given four weeks to develop a set of regulations pertaining to cryptocurrencies.
This is the first time that the Indian Supreme Court has published a fixed timeline for when the government should introduce a regulatory framework for cryptocurrency assets.
India’s cryptocurrency ban has not been revoked – at least not yet
Nevertheless, the Indian Supreme Court did not go so far as to outright rescind the RBI’s circular banning banks and regulated organizations from dealing with cryptocurrency entities.
Instead, the Supreme Court has announced that it will refuse to hear any parties in regards to the cryptocurrency case. Instead it has imposed the aforementioned four-week deadline on the Indian government to implement a clear cryptocurrency policy.
However, this news has still been greeted as a significant step forward by Indian cryptocurrency advocates. For example, Inc24 noted that Nischal Shetty, the founder and CEO of Indian cryptocurrency exchange WazirX welcomed the decision.
In fact, Shetty has been campaigning for pro-cryptocurrency regulations for the past four months in hopes that a regulatory framework would be introduced.
The legal fight for cryptocurrency use in India stretches back further than April of 2018, however, with the RBI publicly cautioning users of virtual currencies as far back as December of 2013.
Now, however, it seems that Indians will only have to wait four more weeks until the situation finally becomes more clear.