The Reserve Bank of India (RBI) seems to be in no mood to accept the reversal of the crypto ban and planning to file a petition in the apex court.
It is hard on the heels, RBI on the breakthrough judgment of the Supreme Court of India is against the lifting up of the crypto blanket ban. In its next move, the central bank is in the process of seeking out a review from the SC to curb the cryptocurrencies. The Indian daily news portal Economic Times mentioned in its report on March 6 without disclosing the names of the people with knowledge of the matter.
Earlier on March 4th, the SC has invalidated the RBI crypto ban and stated that the ban was “disproportionate” which thereon, has given the liberty to all the cryptocurrency exchanges to get involved in the crypto services and related dealings. This ruling also implies on the banks to facilitate the dealing in cryptocurrencies. Meaning, Indians or any customer of the bank can buy, sell, or transfer cryptocurrencies in the country.
Reserve Bank of India Ready to Confront the Supreme Court’s Decision
The controversial crypto ban has lifted from the country, however, according to RBI, the new judgment is a matter of concern because SC’s decision is making crypto/virtual currency trading possible in a huge way and can put the banking system at risk.
Reportedly, due to the flaws in cryptocurrency, SC’s ruling is challenged by RBI. However, earlier during the moot, RBI in its appeal to SC wasn’t able to justify its claims because of incomplete cryptocurrency evaluation.
The blanket ban on cryptocurrencies was imposed by RBI in April 2018, which got effected by July 2018. Later, to alter the decision of the central bank, the ban was challenged and the petition was filed by the not-for-profit industry body- the Internet & Mobile Association of India IAMAI, which takes care of the expansion and enhancement of the online and mobile value-added services sectors in the country.
The dictatorial regime quickly affected changes to the ban that restricted the financial freedom of the people, and almost after the 22 months of the fight and hard struggle of the petitioners, the ban has ended and crypto deposits/withdraws & trading services are started by Zebpay, Unocoin.
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SC’s Decision on Crypto Ban
SCI- the highest judicial court as per the constitution of India in its ruling stated that the Reserve Bank of India was unable to put the damaging aspects of cryptocurrency and convincing ripostes. The crypto ban is lifted and it wouldn’t affect or alter SC’s decision until RBI proves something conclusive against digital assets.
Reportedly, RBI- the central bank possibly face certain issues because when the ban was implemented few entities were affected and forced to ax their trading businesses. Now the ban is altered so these firms may ask for compensation.
ET in the report cited the response of Abhishek A Rastogi, partner, in the Corporate and Commercial Practice Group in the Khaitan & Co.
“The Supreme Court may look at the RBI’s review petition but as of now, the cryptocurrency platforms can operate in India. Many companies have even gone bankrupt after the RBI’s diktat and they may also look to initiate action in this regard.”
Regulations Not Yet Declared
Though on March 4th, the crypto ban had lifted, the regulations are still not clear in the cryptocurrency arena. Within 24 hours of the reversal of ban buying/selling services have been activated by the cryptocurrency firms. However, banks and people are still looking out for clear regulations and required antimoney laundering policies to be implemented to involve in hassle-free crypto commerce.