Fun

RBI to Challenge Supreme Court Verdict on Cryptocurrency

News Feed - 2020-03-06 09:03:07

RBI to Challenge Supreme Court Verdict on Cryptocurrency


The Reserve Bank of India (RBI) is reportedly seeking to file a review petition challenging the supreme court verdict which lifted its banking ban on the crypto industry. The RBI is worried that the court’s decision “could pave the way for trading in virtual currencies and put the banking system at risk.”


Also read: Indian Supreme Court Rules in Favor of Cryptocurrency — RBI Ban Lifted Unhappy With Supreme Court Verdict, RBI to File Review Petition


India’s central bank is planning to file a review petition with the Supreme Court of India against the quashing of its circular aimed at curbing cryptocurrencies, the Economic Times reported Friday, citing people with knowledge of the matter. The news outlet detailed: The central bank is concerned that the apex court’s decision on Wednesday could pave the way for trading in virtual currencies and put the banking system at risk.


The RBI issued a circular in April 2018 banning banks from providing services to crypto businesses, including exchanges. The ban went into effect in July that year and banks proceeded to close the accounts of crypto exchanges. The ban was imposed after the RBI issued several warnings regarding the trading of cryptocurrencies, including bitcoin, but crypto trading remained unaffected. The banking ban forced some crypto exchanges out of business, such as Zebpay, Coindelta, and Koinex. Zebpay recently relaunched in India. The RBI ban on cryptocurrencies was lifted by the Supreme Court of India on Wednesday. However, the central bank is still concerned about cryptocurrencies and is seeking a review of the court decision. Supreme Court Verdict Upholds Legality of Cryptocurrencies


The Indian supreme court said that the right to create something that does not violate any existing rule is an unsaid fundamental law, the news outlet conveyed. “Hence, citizens have the right to create a new industry of cryptocurrencies and exchanges along with the fundamental right to trade … the central bank hadn’t demonstrated that trading in such currencies was damaging to the entities it regulated.”


In its March 4 order which allowed a plea challenging the RBI’s 2018 circular, the supreme court reportedly noted: Trading in cryptocurrencies now will be allowed.


Immediately after the supreme court verdict, crypto enthusiasts worldwide went wild on social media with victorious comments, and several crypto exchanges rushed to resume offering INR deposits and withdrawals through bank accounts. The Supreme Court of India quashes the RBI circular on Wednesday. “Trading in cryptocurrencies now will be allowed,” the court noted. Cryptocurrencies, including bitcoin, have never been illegal in India, both the government and the central bank previously confirmed.


“We welcome the supreme court’s decision to lift RBI’s ban on trading in cryptocurrency,” tweeted the National Association of Software and Service Companies (Nasscom), a major trade association of Indian information technology and business process outsourcing industry. “We believe that banning tech is not the solution, a risk-based framework must be developed to regulate and monitor cryptocurrencies and tokens.” Both the RBI and the Indian government have previously confirmed that cryptocurrencies themselves are not banned in India. The RBI restriction only applies to regulated financial institutions.


Sidharth Sogani, CEO of crypto research firm Crebaco Global Inc., was quoted as saying: In a way, the verdict upholds the legality of cryptocurrencies and decriminalises the investors who have already invested in various crypto assets like bitcoin, ether, and various others.


Meanwhile, the Indian government still has not decided about the country’s crypto policy. The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” was submitted to the finance ministry in February last year. It was drafted by an interministerial committee (IMC), headed by former Finance Secretary Subhash Chandra Garg. The committee was tasked with studying all aspects of cryptocurrency and providing recommendations for the country’s crypto policy. The bill was supposed to be introduced in parliament in the winter session last year but it was not.


Do you think the RBI will try to impose a new banking ban on the crypto industry? Let us know in the comments section below.


Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. Share this story: Tags in this story banking ban, Bitcoin ban, bitcoin legal in india or not, bitcoin supreme court, challenge, cryptocurrency ban, india supreme court, is bitcoin legal in india 2020, rbi ban, rbi cryptocurrency, review petition, supreme court bitcoin, supreme court cryptocurrency, supreme court judgment, supreme court ruling, supreme court verdict Related Bitcoin Legal in India: Exchanges Resume INR Banking Service After Supreme Court Verdict Allows Cryptocurrency REGULATION | Kevin Helms


Indian cryptocurrency exchanges are bringing back banking support after the Supreme Court of India struck down the banking ban on… read more. Indian Supreme Court Rules in Favor of Cryptocurrency — RBI Ban Lifted REGULATION | Kevin Helms


A historic day for the Indian crypto community, the supreme court has finally ruled on the case against the banking… read more. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Please enable JavaScript to view the comments powered by Disqus.

News Feed

Franklin Templeton goes ‘full degen’ with investor note on memecoins
Martin Young2 hours agoFranklin Templeton goes ‘full degen’ with investor note on memecoinsThe trillion-dollar asset manager said memecoins such as Dogecoin “have no inherent value or utility” but have the potent
Israel Arrests 3 in Crypto Scheme to Launder Millions Stolen From France
Israel Arrests 3 in Crypto Scheme to Launder Millions Stolen From France Police in Israel have detained three suspects who allegedly laundered millions of euros stolen from the Fre
PODCAST: Kaiko’s Ambre Soubiran on Bitcoin’s ‘Intrinsic Value’
“One of the things I was hearing all the time when I was in the banking world was ‘OK, but this bitcoin thing, it doesn’t have any intrinsic value,’” said Ambre Soubiran, CEO of cryptocurrency market-data s
Bitcoin Tipped For $340,000 Target If This Support Level Holds – Details
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Ethereum Implements Bellatrix — Network’s Upcoming Paris Upgrade to Trigger The Merge, Validator Block Production
Ethereum Implements Bellatrix — Network"s Upcoming Paris Upgrade to Trigger The Merge, Validator Block Production The blockchain network Ethereum has officially activated the Bel
SEC tries again for Debt Box suit dismissal with option to refile
Derek Andersen2 hours agoSEC tries again for Debt Box suit dismissal with option to refileThe SEC says case dismissal without prejudice is “normally granted” when a plaintiff requests it, but the court has criticized
Bitcoin briefly dips under $60K amid reports of worsening Middle East crisis
Ciaran Lyons5 hours agoBitcoin briefly dips under $60K amid reports of worsening Middle East crisisThe price of Bitcoin briefly went under $60,000 for the second time this week after reports of explosions at an airport i
Gareth Jenkinson7 hours agoSSV​.network hits mainnet to increase decentralization of Ethereum staking poolsSSV.network launches a distributed validator technology network with more than 10 staking DApps to help decentr
Binance Warns Crypto Investors of ‘Massive Phishing Scam via SMS’
Binance Warns Crypto Investors of "Massive Phishing Scam via SMS" Cryptocurrency exchange Binance has warned investors of a “massive phishing scam via SMS.” The scamm
AAVE Faces Major Price Drop As TD Sequential Signals Sell – Details
Este artículo también está disponible en español. The Aave (AAVE) market suffered significant losses in the past week as price declined by 17.07% according to data from C
Oil Producers and Bitcoin Miners Meet in Texas to Discuss Cooperative Mining Possibilities
Oil Producers and Bitcoin Miners Meet in Texas to Discuss Cooperative Mining Possibilities A meetup in a vehicle warehouse in Houston served as an encounter point for oil producers
Crypto Volumes Surge in August: Binance Largest Spot Exchange as Huobi Leads Derivatives
Crypto Volumes Surge in August: Binance Largest Spot Exchange as Huobi Leads DerivativesThe latest report by Cryptocompare shows August spot cryptocurrency traded volumes by the 15