During a hearing in the Supreme court against a petition filed by the IAMAI ( Internet and Mobile Association Of India ), RBI (Reserve Bank Of India) clearly told the supreme court it never had banned cryptocurrency such as bitcoin. The previous decision was made only to “encircle” regulated entities from the associated risk from trading such virtual assets.
“IMAI filed a petition with a supreme court to challenge the 2018 RBI circular which stopped regulated entities from dealing in virtual currencies such as bitcoin and ethereum”
The previous decision was never against the innovation & adoption of new technology, the decision was only encircled for the legal entities such as banks from risk such as terror funding & money laundering.
Affidavit accessed by ET: RBI never prohibited VC such as bitcoin and ethereum in the country, the decision was to regulate legal entities of not providing services to the consumers who are dealing in cryptocurrencies which pose high reputational, financial & legal risk.
However – RBI & IMAI didn’t respond to the ET query yet.
The filled 30 pages affidavit show that RBI recommended the government to place a ban on ICO (Initial Coin Offering) & virtual currency funds within the country.