RBI answerable to crypto firms within two weeks

• RBI has been directed by the Supreme Court of India to reply to cryptocurrency firms within two weeks.
• Several crypto firms have presented suggestions regarding KYC, anti-money laundering guidelines, etc.

Supreme Court of India has given two weeks to the Reserve Bank of India (RBI) to address the country’s crypto exchanges. RBI had recently made a move to ban virtual currency transactions in India.  Internet and Mobile Association of India (IAMAI), representing the exchanges, asked the RBI last year to clarify their stance on cryptocurrencies. The banking regulator has been directed to respond to the representation for its next hearing on September 25.  

The court has also asked the bank to furnish all the documents pertaining to the response within seven days. Senior advocate Shyam Divan representing the bank said that the RBI circular about the restriction is supplementary to the statutory provisions listed under the Banking Regulation Act. The council said the regulator’s powers could be exercised “whenever there is a threat to the monetary, fiscal and financial policy.”
 
IAMAI offered suggestions to the RBI such as anti-money laundering and KYC guidelines to address its concerns. The exchanges submitted that the Money Laundering Act could be enforced, thereby deeming themselves as “intermediaries.” CEO of WazirX, a crypto exchange, Nischal Shetty said:

“We had sent responses citing the provisions currently in the system such as the anti-money laundering and know your customer guidelines to address concerns raised, however, we did not receive a reply.”