The Reserve Bank of India (RBI), India’s Central Bank, has sought the country’s Supreme Court to aid in monitoring cryptocurrencies, as reported by Financial Express.
In April, the RBI noted it will no longer provide services to businesses or individuals engaged in cryptocurrencies because of the high risks involved.
Shyam Divan, RBI’s senior advocate, told Chief Justice Dipak Misra the necessity to regulate Bitcoin (BTC) and other cryptocurrencies as these currencies are prone to illegal practices.
Divan stressed the “immense policy dimensions” of these e-currencies, saying the crypto may affect the global money flows.
The senior advocate cited an interdisciplinary group led by Subhash Garg, secretary of economic affairs, who has created this organization in 2017 to provide a regulatory framework for cryptocurrencies. The RBI needs three weeks before responding to several posted petitions regarding the regulations.
Earlier, the High Court reportedly delayed the final hearing on the RBI’s ban on crypto dealings — moving to September 11 from July 20.
The April crypto ban got negative feedback from the Indian crypto community, including a petition to reverse the ban after getting about 44,000 signatures. In May, India’s Supreme Court ruled to turn down an interim injunction against the RBI ban requested by 11 crypto-related businesses.
Also in May, India’s Supreme Court noted no petitions can be filed in any Indian High Court against the RBI decision to ban crypto dealings. On July 5, the RBI’s three-month ultimatum for businesses to pull out from crypto ended, which means the ban has been fully enforced.
Previously, an unidentified source from the government stressed that officials are planning to classify cryptocurrencies as commodities in exchange for putting a blanket crypto ban.