India’s Reserve Bank of India denies participating in the plot to ban cryptocurrencies

Despite talk of India leading the tech revolution and the ‘Digital India’ campaign, the present government remains hesitant about embracing cryptospace. Consequentially, several crypto-businesses have either tasted the dust or found shelter in crypto-friendly countries such as Australia.

While there have been efforts online to bolster India’s hand in the cryptocurrency revolution, “Team blockchain lawyer” filed a Right to Information (RTI) application regarding the the proposal to ban cryptocurrencies on May 7, 2019. The application was based on a local news article that claimed that the government was considering a ban on cryptocurrencies. A similar application was previously filed by Coin Crunch. However, that did not receive any response.

Reserve Bank of India (RBI) has provided a written response to the recent RTI application, an update that was verbally shared on Team Blockchain’s YouTube channel. Shocking the entire Indian crypto community, the host read RBI’s response as,

“They (Reserve Bank of India) have not received any communication from any department nor have they given any communication to any government department pertaining to drafting of this bill.”

While RBI clarified its non-involvement in drafting crypto-related bills, the organization’s website has been proactively sending out preventive notifications toward crypto-assets for Indian investors. Some of the other departments within the Indian government such as Department of Economic Affairs (DEA) and the Central Board of Direct Taxation (CBTD) had previously endorsed the idea of “completely banning the sale purchase and issuance of all types of cryptocurrencies.”

Despite the RBI denying any involvement in drafting India’s crypto-bill, controversies around the crypto-ban are starting to stir. Following the news, WazirX CEO Nischal Shetty tweeted,

“RBI says it has no knowledge of any such bill about crypto ban. Is the bill even real or has there just been fake news being spread? 🤔

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