RBI Denies Knowledge, Involvement in Draft Bill to Ban Cryptocurrency

The Reserve Bank of India (RBI) has denied having any knowledge or involvement in a draft government bill that would ban cryptocurrencies, an official document released on June 4 shows.


Varun Sethi, a lawyer specializing in blockchain, filed a Right to Information request with the RBI following a report by Indian media outlet the Economic Times in April that suggested several government departments have backed a complete ban on the “sale, purchase and issuance of all types of cryptocurrency.”

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Although the RBI refused to answer some of Sethi’s questions, the bank confirmed it has had no communication from central government about the proposed law — and said it had not received a copy of the draft bill.

The bank refused to be drawn in on whether it was the relevant authority to take a decision on banning cryptocurrencies. However, the RBI said it has not endorsed such a ban to any government department, and that it had not received any written communication to suggest a government department endorsed such a move.

Sethi asked whether it was possible that such a draft bill could be passed without the consent of the RBI, but the bank declined to answer.

The RBI’s has played a central role in regulating cryptocurrencies and blockchain, as well as issuing advice to investors.

In April, the organization unveiled a regulatory sandbox that would enable blockchain products to be tested on a small number of consumers, but cryptocurrencies, exchanges and initial coin offerings were excluded. The decision prompted lobbying groups to urge the RBI to reconsider.

The world’s second-most populous nation has been slow to take a stance on cryptocurrency regulation, and the uncertainty has resulted in the closure of several Indian exchanges.

ⓘ This update first appeared on Cointelegraph.com

Editorial Staff
Editorial Staff

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