After India’s efforts to combat cryptocurrencies related operations, the outcome was not as expected. When the country’s central bank, the Reserve Bank of India, has recently attempted to a cryptocurrencies ban, especially targeting the Bitcoin (BTC) operations, the organization is now confronted with legal repercussions for its actions.
India’s central bank to face legal action
India has experienced a difficult connection with Bitcoin (BTC), as well as with other and other cryptocurrencies. Now, it appears that the general atmosphere is not set to change soon. Even though the Reserve Bank of India is seeking to ban cryptocurrencies operations, it looks as if their endeavors may prove meaningless and could cause them even more troubles.
The Reserve Bank of India has promulgated a resolution dissuading the creditors from financing cryptocurrencies exchange and transactions. This is a serious issue for these cryptocurrency exchanges, particularly for the ones who have to handle investments and withdrawals in banknotes.
Apparently, India’s constitution prohibits a total cryptocurrencies ban
The banks were advised to progressively close their relations with cryptocurrency exchanges in the time frame between April and July 2018. However, it is still unknown how numerous are the financial institutions that have implemented this until now.
A petition was submitted to the Delhi Supreme Court at the beginning of this week demanding a verdict from the Reserve Bank of India. In the words of Kali Digital Eco-Systems, India’s national constitution apparently prohibits a complete cryptocurrencies ban, thus filing the appeal.
Although it is not the very first time that someone has declared that the harsh measures taken by the central bank in India are anti-constitutional, it might be well accepted in India. If the RBI fails to officially explain why such an approach is needed and for what reason they intend to accomplish it, it is clear that the decision-making process following this amendment of the circumstances could be contested.
In short, the Reserve Bank of India will face legal action against it after it took the decision to implement a total cryptocurrencies ban, which, apparently, is not a constitutional endeavor in India.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.