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RBI Didn’t Conduct Enough Research on Cryptocurrencies Before Banning Them

 

On April 6, the RBI mandated banks, e-wallets, and payment gateway providers to withdraw support for cryptocurrency exchanges and other businesses dealing with VCs in India.

In response to a Right to Information (RTI) query, put forward by Varun Sethi who runs a Twitter handle by the name @Blockchainlaw91, it came to light that the Reserve Bank of India did not do any due diligence or research before announcing the ban on cryptocurrencies.

Sethi said,

RBI had assured analysis of global regulations, but they have not done any outreach so far to any country for the right understanding of the concept of digital currencies.

Experts say petitioners will likely attempt to use the response to show how the RBI’s decision did not rely on credible or neutral evidence of harm. This may affect the constitutionality of the RBI’s guidance.

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