Who said cryptocurrencies are banned in India?
No, it's not banned. Every Indian crypto enthusiast knows that for sure.
All the FUD regarding crypto ban was actually created by the mainstream media.
But today, it has changed!
Indian mainstream media was always reporting against cryptocurrencies. and to a large extent, it was successful in creating a negative image about cryptocurrencies before the general public.
But the strong arguments put forth by the IAMAI counsel Mr. Ashim Sood in the ongoing hearing of RBI vs. IAMAI case in Supreme Court has probably compelled the mainstream media to report the truth. (The truth comes out eventually anyway).
So The Economic Times reported the news today with the heading
"RBI says crypto not banned, but don’t bank on it".
The ET article's opening lines are noteworthy:
The Reserve Bank of India has said it had not banned cryptocurrencies such as Bitcoin in India, but only ringfenced regulated entities like banks from risks associated with trading of such virtual instruments.
It quoted this important text from the 30 page affidavit filed by RBI which was submitted in the Supreme Court:
“Firstly, the RBI has not prohibited VCs (virtual currencies) in the country. The RBI has directed the entities regulated by it to not provide services to those persons or entities dealing in or settling VCs… The RBI has been able to ringfence the entities regulated by it from being involved in activities that pose reputational and financial risks along with other legal and operational risks,”
The news item also had these closing remark stating the weakness of RBI's stance:
According to legal experts, the stance on crypto trade posing a risk to sovereignty could be a weak one if not substantiated with examples of virtual currencies being used to fund terror in the past.
As the time passes by, it would be interesting to see how mainstream media and the Government changes their stance in favour of cryptocurrencies.
Today's hearing couldn't take place in Supreme Courts as one of the judges of 3 member bench was on leave.
Tomorrow is also an important day in SC as hearing for controversial Citizenship Amendment Act is expected to start.
Interesting times are yet to come! All eyes are on SC.