The crypto currency and the bitcoin currency, the transaction is impossible: the Reserve Bank of india
The Reserve Bank has said in the
Supreme Court that crypto currency is not a real currency. He does not regard virtual
currencies like Bitcoin as currency, nor is there any law that makes the bank
qualify for the acceptance of Bitcoin. The bank clarified that the
transactions, payments, settlement, etc. under these currencies can not be
protected by law.
In the fresh affidavit filed in the
Supreme Court, the Assistant General Manager of the Reserve Bank said that
virtual currencies are not in a solid state and they are not issued by any
bank, so no law is imposed on them. The currency regulator said that under the
FEMA (Foreign Exchange Management Act) the Reserve Bank has the authority to
notify any thing as a valid currency. But the law requires that such instrument
should have properties such as check, postal order, money order etc. Hence, in
such a case, Bitcoin can not be declared currency under FEMA.
Requesting to dismiss all petitions,
the bank said that users, depositors and businessmen have been warned of its
dangers. The Reserve Bank told the Supreme Court that all petitions should be
dismissed as it is the case of economic policy in which the government and the
Reserve Bank have the legal right to take a decision. Their approach of
petitioners can not be the basis for challenging policy matters.
The bank has given this reply in response to all the petitions, in which the court has urged that
the order to stop the business of crypto currency in the country should be
ordered because it can lead to the flow of money for anti-social activities. At
the same time, there are some petitions in which the Reserve Bank's
notification on April 6 has been challenged. In this notification, the Reserve
Bank had restricted the financial institutions under its control from providing
services in crypto currency. These petitions are also filed in many high courts
of the country.
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