“There is no new development following the Supreme Court pronouncement on the crypto matter,” Malhotra said during a post-policy press briefing.
He emphasized that a government committee is actively reviewing the issue, but reiterated the central bank’s stance that crypto poses risks to financial stability and monetary policy transmission.
Supreme Court Pushes for Regulation, Not Prohibition
In a separate but related development, a Supreme Court bench led by Justices Surya Kant and N Kotiswar Singh ruled that an outright ban on crypto is not viable, especially in light of global financial trends. The Court stressed that the regulatory vacuum has created space for misuse and called on the government to establish a proper framework.
The Court’s remarks signal a growing disconnect between judicial direction and central bank conservatism, adding pressure on policymakers to act.
New Regulatory Approach for Broader Policy
While standing firm on crypto, the RBI also introduced a new framework for making future regulations. According to Malhotra, this new approach will rest on three core pillars:
- Public consultations with relevant stakeholders
- Impact analysis, including qualitative and systemic risk evaluations
- Periodic review of regulations to reflect evolving financial conditions
This model aims to make policymaking more transparent, adaptive, and inclusive across all sectors—not just digital assets.
Conclusion: Crypto Policy Still at a Crossroads
India’s crypto future remains uncertain. While the Supreme Court calls for action, the RBI remains wary, and the government committee continues to deliberate. For now, the status quo holds—but the pressure to move from indecision to regulation is mounting fast.
The post RBI Holds Firm on Crypto Concerns as Supreme Court Urges Regulation appeared first on Coindoo.
