India’s Supreme Court issues the government an ultimatum for cryptocurrency regulations

• Supreme Court gives the government only 4 weeks to develop the said crypto regulations.
• The Union of India has been granted one last chance to come up with the guidelines for the virtual asset market.

Finally, there is light at the end of the tunnel following a directive to the government of India to come up with cryptocurrency regulations. The directive issued by the country’s Supreme Court gives the government only 4 weeks to develop the said crypto regulations.

Moreover, the court has told the government that if it fails to do so within the stipulated time, it will be forced to make its own judgment. The directive comes after a court hearing on February 25. The Union of India has been granted one last chance to come up with the guidelines for the virtual asset market. The Supreme Court made it clear that it is going to halt all cases related to digital assets including those of the parties that are seeking to have the directive by the Reserve Bank of India (RBI) reversed.

The RBI directive was issued in April 2018 where banks were requested to stop all dealings with people or businesses involved with cryptocurrencies. Consequently, the High Court of Delhi found the direction to be against the constitution. However, the Supreme Court continued to uplift the directive in spite of hearing several petitions.

A committee of the Indian government recently published a report that raised concerns regarding the influence of digital assets on the country’s fiat currency in the event cryptos were allowed to work as a legal form of payment.