The Supreme Court of India has lifted the RBI’s crypto ban decision on 4 March. However, the Reserve Bank of India is still concerned about crypto and requesting a review of the court’s decision.
06 March, 2020 | AtoZ Markets – RBI (Reserve Bank of India) plans to file an appeal against the recent Supreme Court ruling which lifted its banking ban on the crypto industry. According to a report from The Economic Times, the RBI is concerned that the court ruling “would pave the way for virtual currency trading. It endanger the banking system”.
RBI Appeal Court’s Crypto Decision
On 04 March, the Supreme Court of India overturned the RBI’s ban decision on banks dealing with crypto. The RBI had initially enforced the ban in July 2018. Moreover, the ban was imposed after the RBI issued several warnings about the cryptocurrency trade, including bitcoins, but the cryptocurrency trade was unaffected.
However, the challenge was brought to the Supreme Court by the Internet & Mobile Association of India (IAMAI), a non-profit industry body representing consumers and investors on the Internet. The court’s decision to overturn the ban made after two weeks of hearings in January this year. The RBI is now planning to request a review of this decision. Many crypto exchanges in India have already resumed fiat deposits and withdrawals within 24 hours of lifting the ban.
Court Verdict Upholds Legality of Crypto
The Indian Supreme Court has declared that the right to create something that does not violate any existing rule, the media reported. “Consequently, citizens have the right to create a new industry of crypto and the fundamental right to trade. The central bank has not demonstrated that the trade in these currencies was detrimental to the entities that it regulates “.
Moreover, the Supreme Court reportedly noted, “the cryptocurrency trade will now be allowed.” The banking ban has forced the closure of some crypto exchanges, such as Zebpay, Coindelta and Koinex. Zebpay recently relaunched in India.
The central bank could also face another problem. Many companies forced to cease operations after the ban and could seek compensation. A lawyer representing one of the cryptocurrency platforms, Abhishek Rastogi also explained:
“The court may consider the RBI’s review request, but as of now, cryptocurrency platforms can operate in India. However, many crypto companies have even gone bankrupt after the RBI’s ban. They may also be seeking to initiate actions in this regard. “
Sidharth Sogani, CEO of the crypto research company Crebaco Global Inc, also said:
The decision confirms the legality of crypto and decriminalizes investors who have already invested in various crypto assets.
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