At the Supreme Court hearing, the representative of India's Reserve Bank reportedly noted in his message the need for regulation of the local crypto market in order to prevent illegal transactions in India.
Besides, this statement was supported by the prosecutor general. An official stated that bitcoin can be classified as an exchange commodity and thus may be regulated in line with the traditional financial instruments.
Specifically, the Central Bank notified all financial institutions about the ban on services for companies dealing with cryptocurrencies. Moreover, local banks also cannot process transactions that can potentially be used for further purchases of digital coins.
This decision was followed by the complaint lodged to the court by the community, citing that such decisions must be made by the parliament. Meanwhile, the Reserve Bank of India later admitted that the restriction had been launched without any study or consultations.
Last week, the Supreme Court left the ban valid and decided to postpone the final hearing to September referring to insufficient arguments. Notably, the lawyer of the Central Bank accepted that the crypto sector must be regulated, which means good progress in the previous issues.