RBI does not issue directives against SC order on crypto trading: Sources

The Reserve Bank of India (RBI) has repeatedly expressed concern about the cryptocurrency, but has not issued a directive contrary to the Supreme Court’s ruling.

Coinbase CEO and co-founder Brian Armstrong said that just days after the start of India, informal pressure from the RBI led to the disruption of the international crypto exchange UPI deposit. However, an acquaintance pointed out that the RBI has only shown its public concern over cryptocurrencies.

Highlighting concerns

“Considering its main role in maintaining financial stability and risking cryptocurrency transactions (money laundering, financing terrorism), price volatility, lack of customer protection, the RBI has publicly expressed concern,” the source said.

The RBI’s May 31, 2021 decree, issued on April 6, 2018, states that the circular, which imposes certain restrictions on virtual currency regulators, is no longer valid. Of judgment. The RBI also advised stakeholders to continue to conduct customer engagement in accordance with the provisions of the KYC, AML, CFT and Compensation Act (PMLA). FEMA

‘Special Market’

Armstrong told the Supreme Court that India was a special market and could not block crypto. However, there are those in government who do not seem to be optimistic about this, including the Reserve Bank of India. And they say there is a “shadow block” in the press – basically, they are working behind the scenes to block some payments that could go through the UPI.

Coinbase launched Crypto trading services in India on April 7 and announced that Indian users will be able to exchange online using the Unified Payment Interface (UPI). However, the Indian National Payment Corporation, which is owned by UPI, issued a statement on the same day stating that “UPI does not know of any crypto exchange.” As a result, other crypto exchanges have seen the disruption of UPI services to transactions, causing problems for many investors.

Published on

May 12, 2022

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