Cryptocurrency Exchanges Ban Will Remain, the Top Court of India Refuses to Lift Ban

Cryptocurrency Exchanges Ban Will Remain, the Top Court of India Refuses to Lift Ban

July 8, 2018 Off By Steven Anderson

The Reserve Bank of India’s ban on crypto exchanges will remain according to Supreme Court. The country’s top court has rejected to grant any temporary measures to the crypto exchanges against the RBI’s crackdown on the exchanges.

A few months ago, the Reserve Bank of India directed all the banks to fix within three months all their banking relationships with other virtual dealers and exchanges. The RBI ban on crypto exchanges kicks in from 6th of July. Shaken by the bank’s command, some of the cryptocurrency exchanges had drawn the central bank to the high court last April.

In May, the supreme court had set the next scheduled for the next hearing of the said case on July 20. The schedule was set two weeks after the effectivity of the ban. Nevertheless, the Internet and Mobile Association of India (IAMAI), later approached the supreme court for an early hearing, which took place early this week.

According to Rashmi Deshpande, the associate partner at Khaitan & Co, this act will be a sure win for the traders and crypto exchanges. He also said that they already requested the RBI to extend the deadline for at least a month after the first hearing. Deshpande is an expert associate in at Khaitan law firm, an exchange firm which sets out to launch its operations this year. He also added that due to the continuation of the ban, the banking route for all the users of the exchanges would be choked.

During the preceding hearing held last May 17, the supreme court already asked the exchanges to comply with the representation against the central bank. The report said that most of these exchanges had tied up with the RBI during the last week of May and earlier this June.

In spite of the high court upholding the ban, most of the cryptocurrency exchanges are still hopeful. The supreme court forwards all the presentations given the exchanges to the RBI. Today, the Narendra Modi government is finalizing the regulation on cryptocurrencies, according to a government official.

According to Subhas Chandra Garg, the Secretary of the Economic Affairs, they has landed a draft for the virtual currencies which involves the parts about the banning of the businesses and the one that should be preserved. He also added that the matters should be discussed during the first week of July and should be generalized within two weeks. Today, all the attention of the crypto exchanges is on the next court hearing and the Indian government.