India’s Cryptocurrency Banking Ban May Be A Bust
The three-month time span from the Reserve Bank of India’s initial announcement that all RBI regulated entities must cease any crypto related activities, including both individuals and firms, was filled with speculation on how the authorities would handle such a ban. Today new information from a finance ministry panel assembled to study the issue indicates there may not be a blanket ban.
The original language of the ban said that after July 5 crypto investors, neither private nor institutional, would be allowed to invest new money into, or take existing money out of, any digital assets. The ban was meant to close any banking link between exchanges and investors.The creation of the ban has been generally understood as a way to limit money laundering and other criminal activity that may use crypto investment as a cover.
The ban was quickly challenged by all sides of the crypto market as opponents argued that investment in digital assets is no different than an investment in any other kind. Anirudh Rastogi, a managing partner at TRA Law, called the ban “unconstitutional at various levels … know-your-customer (KYC) and anti-money laundering (AML) verification should be enough to prevent illicit activity.”