Current Legal System Can’t Recognize Bitcoin, India’s Central Bank Tells Supreme

[SuperBazooka]

Current Legal System Can’t Recognize Bitcoin, India’s Central Bank Tells Supreme Court
The Reserve Bank on India (RBI) on Wednesday filed an affidavit in the Supreme Court to clarify its stand on cryptocurrencies like Bitcoin.

The central bank reserved its views on the legality of cryptocurrencies in India, telling the apex court that the constitution has not defined any legal system for virtual currencies. Citing the provisions of The Coinage Act and The RBI Act, the affidavit explained that the existing legal frameworks neither recognize Bitcoin as currency nor money. Hence, they are not a valid payment system.

The Supreme Court of India is currently hearing a case between the RBI and Bitcoin exchanges. The court’s busy schedule has pushed the hearing date twice already; the next hearing is now scheduled for September 17, 2018.

FEMA, PSSA Roadblocks to Recognition
RBI has been facing a backlash from the Indian crypto-community ever since it ordered banks to discontinue their services with cryptocurrency exchanges. An RTI response after the blanket ban further revealed that the Indian apex bank didn’t research Bitcoin enough before dismissing it.

However, RBI said they could not be the one to term Bitcoin as legal or illegal. They are bound by statutory provisions –  the acts mentioned in the Constitution of India – that makes them take the necessary measures against the booming virtual currency industry.

“RBI cannot unilaterally decide for the Government, on the legality of Bitcoins,” the central bank said.

The RBI affidavit mentioned The Foreign Exchange Management Act (FEMA) which allows them the authority to name instruments as valid currency. But the act itself is only valid for instruments with similar characteristics that of cheques, money orders, postal orders, etc.
https://www.ccn.com/current-legal-system-cant-recognize-bitcoin-indias-central-bank-tells-supreme-court/

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[dothebeats]

Seems legitimate enough to me. While India is busy scrambling words for bitcoin and other crypto, they are planning to create their own cryptocurrency. Isn't that ironic coming from someone who opposes the thought of crypto while promoting their own creation? Perhaps they are thinking that legalizing crypto and bitcoin first before they introduce their own would severely affect the growth and success of their lovely cryptocurrency. There'd be a massive gap of interest between a government-issued crypto and a decentralized one, so in order to combat that scenario, blocking any legal advancements for bitcoin is the way they are taking right now

[Dilnaz Bota]

I heard the government of India trying to come back in this sector. I also heard that they created a group to do research and methods. After finishing those things hopefully, they will be back.

[rosstiller]

They are planing to join this sector. I listened the government of India attempting to come back in this segment. I too listened that they made a bunch to do inquire about and strategies. After wrapping up those things ideally, they will be back. And that would be more profitable for them.

[Rosyanroid]

I tuned in the government of India endeavoring to come back in this fragment. I as well tuned in that they made a bunch to do ask around and methodologies. After wrapping up those things in a perfect world, they will be back. Which would be more productive for them.

[Beimere]

I agree and support India for their decision. If you see, most of the people from india are little educated. with little knowledge it is not possible to handle cryptocurrency while they fail to understand fiat currency all time.This is good for India govt. Central bank will be safe.