RBI Ban On Bitcoins Had No Research, Data; Digital Coins Can Be Allowed With T&C!

RBI Ban On Bitcoins Had No Research, Data; Digital Coins Can Be Allowed With T&C!

Ever since Govt. of India ordered banks and financial institutions to stop all bitcoins and cryptocurrency related transactions, an intense battle is being fought between evangelists of digital currencies and Govt. officials.

Right now, the matter is sub-judice, and Supreme Court has asked Govt to respond on this unofficial ban. Besides, two separate high-level committees are investigating the nuances of this niche, and they are expected to present their report soon.

Amidst this, reports have emerged which indicate that Govt. may allow bitcoin trading and other cryptocurrencies; however, they can be some riders.

In a related news, an RTI shows that the proposed ban by Govt. on bitcoins has nothing to do with research and data – It was purely a reaction based on rumours.

Will bitcoins become mainstream in India?

Bitcoins Trading With Terms & Conditions?
As per an exclusive report by ET Now, strong indications have come in about legalization of bitcoins (although bitcoins are not yet illegal, technically).

Some insider sources, who are close to the members of the panel which is right now investigating bitcoins and other digital currencies, are against a total ban on the digital currencies.

If we believe the reports, then bitcoins would be allowed to be traded, albeit with terms and conditions.

It is not yet clear what exactly are these terms and conditions.

In the month of April, RBI had issued a circular, which effectively banned trading of cryptocurrency in Indian banks. Last year, IT Raids were conducted across crypto-exchanges to figure out the actual money involved.

Delhi HC has also asked RBI about the status of bitcoins in India.

In May this year, we had reported that cryptocurrencies can be made legal in India, as new regulations are being framed.

RTI: No Research Behind Bitcoin Ban!
Meanwhile, as per RTI filed by Varun Sethi, a lawyer representing bitcoin and cryptocurrency traders in India, there has been no research behind RBI’s decision to stop bitcoin and digital currency trading in India.

Sethi said,

“The RBI specifically mentions that it conducted no research or consultation before the implementation of restriction in April. The RBI also responded that no committee was ever formed for analysing the concept of blockchain before the decision,”

As per experts, this RTI reply can be played against Govt. and RBI during the arguments in the Supreme Court.

We will keep you updated, as we receive more updates.