The Reserve Financial institution of India (RBI) is planning to file a petition in opposition to the latest landmark judgment made by the Supreme
The Reserve Financial institution of India (RBI) is planning to file a petition in opposition to the latest landmark judgment made by the Supreme Court docket that nullified the controversial banking ban it imposed on firms transacting in cryptocurrencies.
In accordance with a report by The Financial Occasions on March 6, the RBI is nervous that the courtroom’s choice might result in cryptocurrency buying and selling and put the banking system in danger.
Difficult the Supreme Court docket’s choice
As Cointelegraph reported, on March four the Supreme Court docket nullified the RBI’s blanket ban on banks coping with crypto companies. The central financial institution had initially enforced the ban in July 2018.
This led to petitions from business gamers and public alike, till the problem was delivered to the Supreme Court docket by the Web & Cell Affiliation of India (IAMAI), a not for revenue business physique representing web shoppers and buyers.
The Supreme Court docket’s choice to overturn the ban adopted two weeks of hearings in January this yr. The RBI will now search a overview of this ruling.
No proof that the banking system is in danger
The RBI’s concern that this may increasingly end in cryptocurrency buying and selling could already be moot, as many Indian cryptocurrency exchanges already resumed fiat deposits and withdrawals inside 24 hours of the ban being lifted.
Nevertheless, the courtroom ruling acknowledged that RBI had not conclusively proven that cryptocurrency buying and selling was damaging. Until it could accomplish that, the Supreme Court docket is unlikely to change its choice, regardless of the central financial institution’s protests.
The central financial institution may face one other situation, as many firms had been pressured to stop buying and selling after the ban and should search compensation. As Abhishek Rastogi, a lawyer representing one of many cryptocurrency platforms defined:
“The Supreme Court docket could have a look at the RBI’s overview petition however as of now the cryptocurrency platforms can function in India. Many firms have even gone bankrupt after the RBI’s diktat and so they may look to provoke motion on this regard.”