The authorities in India are very likely to reverse the Reserve Bank of India's (RBI) decision to ban all cryptocurrencies. Once the decision is cancelled, digital money will be regulated by the rules, according to The Economic Times India.
The publication referring to the local financial company Cogencis, has released an article according to which digital money will be controlled through a new rulebook.
According to journalists, the government of the country does not support the decision of the RBI, since it was adopted without any research by the industry. In addition, the Reserve Bank could not explain why they blocked the accounts of crypto-exchange exchanges.
The companies affected by this decision intend to challenge it in the Supreme Court on July 20, while the RBI itself faced a wave of criticism because of its point of view, which many considered a reaction to imaginary threats. Representatives of local crypto exchanges say that this was a "very superficial solution." And instead of doing research like many other countries, India imposed a ban.
On April 5, the Reserve Bank of India has virtually outlawed all cryptocurrencies by barring regulated entities from providing services to any individual or business dealing in digital currencies. "In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs (virtual currencies),” said a statement from the bank.
It has already been discussed that the authorities of India were working on a proposal that will allow authorities to impose a Goods and Services Tax on cryptocurrency transactions. And that's despite the legal uncertainty regarding crypto activity in the country. It also became known that the Indian crypto-exchanges are ready to make some concessions in order to establish a relationship with the RBI.
By Ekaterina Ulyanova