In April 2018, RBI had decided not to provide any kind of services to the business or individuals keeping contact with cryptocurrencies as it is a parasite.
Shyam Divan, RBI Senior advocate told the bench headed by Dipak Misra (CJI) that it will be beneficial to regulate Bitcoin(BTC) and other cryptocurrencies as well since these means have the capacity to “encourage illegal transactions. ”Divan also added that crypto world has the ability to affect global money flow.
The issues are being examined by the committee headed by Subhash Garg, Secretary of Economic Affairs. The committee was set up in the year 2017 to frame and develop the trading of cryptocurrencies but was not successful in doing so at that time. Finally, RBI agreed and asked for three weeks time to look into the matter and answer accordingly.
RBI’s planning to ban crypto dealings was dated on 19th July for hearing in Supreme Court of India whereas the apex court rescheduled it for 20 July- 11 September.
As per the news, in April, the crypto world received a negative result from Indian crypto community, along with an online petition to oppose the ban with almost 44,000 signatures.
In May after going into details Supreme Court finalized that RBI ban cannot be granted an interim injunction sought by almost eleven business related with cryptocurrencies.
The SC further stated that no appeal can be filed in High Court against the decision made by the RBI to ban crypto dealings.
Finally, on July 5, RBI’s intention to a deadline for industries to withdraw from crypto came to an end, this clearly states that the ban received a green signal and came into force.
An unknown source reported in the government of India that the authorities instead of introducing a blanket crypto ban it is better to plan to classify crypto as an object.