On May 31, the Reserve Bank of India (RBI) urged banks not to use its 2018 order as a reason for refusing to provide banking services to cryptocurrency trading customers, saying that its 2018 order was overturned by the Supreme Court in March this year. In April 2018, the Reserve Bank of India issued a notice instructing banks to ensure that customers using cryptocurrencies cannot obtain banking services.
Officials on the legality of virtual currencies issued by private entities The central bank has repeatedly warned of the potential risks that these unregulated private currencies pose to investors and the financial system. Many people believe that the 2018 announcement tried to prevent citizens from buying cryptocurrency. By prohibiting banks from conducting cryptocurrency-related transactions, the Reserve Bank of India effectively banned any significant rupee investment in cryptocurrencies.
SC canceled the RBI order, only to indicate that there is currently no legal basis to impose strict restrictions on cryptocurrencies. In the future, when Parliament passes a law prohibiting the use of RBI, the court cannot support this view. On the other hand, the court may be forced to provide current clarifications because some banks have recently mentioned their 2018 notice (which is now invalid) to prevent Clients trade cryptocurrencies.
Crypto skeptics say that there are good reasons to believe that governments around the world will eventually ban all cryptocurrencies. They believe that governments and their central banks will not allow them to weaken their currency monopoly. Finance Minister Nirmala Sitharaman said in March that the country will not completely ban the use of cryptocurrencies, but the center soon plans to propose a bill to regulate cryptocurrencies and official digital currencies in 2021.
According to reports including the clause prohibiting the use of cryptocurrency. Full cryptocurrency includes all cryptocurrencies, so the future of cryptocurrency in India is still at risk.