The Supreme Court of India has determined to provide Indian authorities with an extra four weeks for drafting policies that may regulate crypto segment in the country. At the same time, the court will make its own determination in case it sees no the rules provided before the deadline.
The Union of India seems to get the last chance for coming up with regulations for the digital asset industry. The Court will no longer carry ou crypto-related hearings, including those connected with the ban on operations with cryptos issued by the Reserve Bank of India.
In April 2018, the RBI issued an order under which banks were not allowed to provide services to individuals or businesses that deal with cryptos. This decision faced heavy critics by the High Court of Delhi. Moreover, the latter said the RBI’s move violated the effective constitution, while the Supreme Court kept supporting the ban even despite numerous petitions against it.
Even though the RBI refrains from approving cryptos, the Central Bank of the country was mulling over an idea to issue its own central bank digital currency (CBDC) backed by INR in August 2018. However, it rescheduled the launch for January 2019.
In a recent report, one of the Indian governmental committees was concerned about the impact of cryptos on the local fiat currency if it is adopted as a means of payment. Another committee in its turn suggested that the government should legalize cryptos, so the situation remained unclear.