India: RBI Set to Challenge Supreme Court’s Crypto Verdict
India’s central bank, the Reserve Bank of India (RBI) is putting preparations in top gear to file a review petition in the Supreme Court against the court’s verdict in favor of cryptocurrency trading in the state, reports the Economic Times on March 6, 2020.
RBI Not Giving Up
As reported by BTCManager on March 4, 2020, the Supreme Court of India quashed RBI’s diktat that barred all financial institutions under its purview from servicing bitcoin trading venues and other crypto-linked businesses.
However, it appears the RBI is not giving up just yet on its push to ban all things cryptocurrency within the country, as sources close to the matter have revealed that the 85-year-old bank is planning to file a review petition on the Supreme Court’s verdict.
Reportedly, the RBI is of the opinion that the new judgment will usher in a wave of new crypto-related businesses into the nation and pave the way for crypto trading once again, putting the banking system at risk.
In its ruling, the Supreme Court made it clear that creating cryptocurrency exchanges and trading in virtual currencies are part of the fundamental human rights of Indians since these activities do not in any way violate any existing law of the land.
Also, the bench stated categorically that the RBI has failed to prove beyond a reasonable doubt that crypto trading is a threat to banks under its purview.
India’s Cryptospace Resurrects
Importantly, crypto enthusiasts in India have applauded the Supreme Court’s ruling, saying it legalizes cryptocurrencies and decriminalizes investors.
Sidharth Sogani, founder and CEO of Crebaco Global Inc., a blockchain and crypto research firm said:
“In a way, the judgment upholds the legality of cryptocurrencies and decriminalizes investors who have already invested in various cryptoassets like bitcoin, ether, and various others. Crypto exchanges in India can now offer clients fiat-to-crypto and crypto-to-crypto trading pairs. It remains to be seen how soon the banks will start supporting the exchanges.”
On March 5, 2020, Unocoin announced that it’s reinstating its bank account deposit and withdrawal service, and Binance-run crypto exchange, WazirX has also resumed fiat deposits.
Though the RBI April 2018 ban on cryptos has already succeeded in chasing many bitcoin powered firms out of India, it remains to be seen whether the landmark judgment by the SC will hold firm and finally resurrect the Indian cryptocurrency Industry.
