There seems to be no relief for Indian cryptocurrency investors and traders who were faced with a disheartening decision recently. The Indian supreme court refused to grant any relief to cryptocurrency exchanges which have been severely affected by a crackdown on them by the Reserve Bank of India.
The decision came into effect on April 5 when the RBI directed all banks to wind up their business within three months. The ban comes into effect tomorrow. This ruling threw cryptocurrency companies into consternation and they banded together to instigate a case against the Reserve Bank of India at the country’s Supreme Court.
Initially, the court set a date for a hearing on July 20. However, on an initiative by the Internet and Mobile Association of India, an early hearing took place on July 3 but the decision was that the court simply upheld the ban.
In comments to the media, Rashmi Deshpande, associate partner at Khaitan and Co, a law firm which specializes in crypto legislation and which is advising Kali Digital Eco-Systems, an Indian exchange planning to begin operations next year said that this was a big blow to crypto business in the country.
“This a win for the RBI and a big blow to virtual currency exchanges and traders. In our earlier request to the RBI as well, we had asked it to extend the deadline by a month after the July 20 hearing. However, now that the ban will continue, the banking route for the exchanges and its users will be completely choked,” Deshpande added.
In the previous hearing that was held on May 17, the court had asked these exchanges to submit their representation against the central bank. The firms had engaged with the RBI during the last week of May and early June but to no avail.
However Indian cryptocurrency investors are confident that the scheduled hearing for July 20 will perhaps yield better results.
Jay is pretty interested in the crypto space. He’s written for several publications on the topic and has lots of ideas on how the world can be made a better place with blockchain technology. He’s also a fintech journalist with some years of experience and enjoys writing about new startups, ICO’s as well as any other intriguing news that catches his fancy.