Previously Banks in India working under the rules framed by the central bank i.e. Reserve Bank of India ; the banks were instructed not to allow their customers debit their accounts maintained with the banks for purchase of crypto currency.
Against this order; one suit was filed in the Supreme Court of India. During one hearing the Reserve Bank of India admitted that the instructions were given to check illegal transactions in the country.
Now Bank has admitted that regulation of crypto currency is their necessity. This admission indicates that transactions will not be restricted but will be regulated. So again the business will start. Though final hearing is in September this year.
I am very much positive that Central Government will definitely allow the transactions to take place but definitely will like to impose certain rules and regulations to stop money laundering; terror funding etc. Prime Minister Mr Modi is very much in favour of digitalization of money in India; so future of crypto in India seems very bright.
https://www.ccn.com/ban-u-turn-indias-central-bank-admits-cryptocurrency-regulation-is-necessary/Mostly correct statement but need few corrections. Banks have never admitted that regulation of cryptocurrency is a necessity. They were always in favor of complete ban like majority of other banks in the world. They are talking about regulation now because they have understood that it is beyond their control. Now they want to regulate it because that is the most reasonable way to them. Most likely the government will take this route.
Secondly, the next hearing date is scheduled on 11th September 2018. In the meantime, the supreme court has asked few regulators like SEBI and Finance ministry to provide their views on this matter. I don't expect they will provide anything positive. But yes, the case seems like turning positive for the crypto community because government is understanding the fact that it is impossible to control the circulation of cryptos in india. Instead they will try to regulate the crypto related businesses and impose taxes on it to fill their coffers. A lot depends in 11th September. Mark the date!
Thanks for corrections. Sure that it all depends on hearing in supreme court on 11th Sept. But I am sure in the years to come; the role of crypto in India will increase.