- The Reserve Bank of India (RBI) has highlighted concerns over cryptocurrencies from time to time. It has however not issued any instruction going against the Supreme Court’s order.
- The CEO and cofounder of COINBASE Brian Armstrong had recently said informal pressure from the RBI led the global crypto exchange to disable UPI deposits a few days after its launch in India.
- However, a person in the know pointed out that the RBI has only publicly highlighted its concerns on cryptocurrencies.
- Considering its prime responsibility of maintaining financialstability and the risks in cryptocurrency transactions like their possible use for illicit activities, price volatility, lack of customer protection, RBI has publicly highlighted its concerns, the source said. The RBI in its May 31, 2021, circular had stated that in view of the Supreme Court order, its circular dt April 6, 2018, which imposed restrictions on regulated entities in dealing with virtual currencies, is no longer valid from the date of the judgment.
- Armstrong, in the company’s earnings call, had noted that India is a unique market in the sense that the Supreme Court has ruled they can’t ban crypto.
“But there are elements in the government there, including the RBI who don’t seem to be positive about it. And so, it’s been called a “shadow ban”,” he had said.