India’s Supreme Court upholds the Reserve Bank of India (RBI) decision to ban cryptocurrency use for financial entities. Supreme Court heard one petition against the crypto banking ban by the country’s central bank today. But the court did not grant a stay and the ban is set to proceed as planned, prompting crypto exchanges in the country to start implementing their solutions for banking alternatives.
Breaking! Supreme Court of India refuses to grant temporary stay against RBI’s banking restriction against Crypto. Stay tuned for further updates! #rbiupdate
— Crypto Kanoon (@cryptokanoon) July 3, 2018
On April 6, RBI stated it forbid financial entities from dealing with digital currencies.
entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs (Virtual Currencies),
the statement said.
The ban is set to take effect on July 5. A number of industry participants have petitioned against the ban. This petition is by the Internet and Mobile Association of India (IAMAI) whose members include major crypto exchanges in the country such as Unocoin, Zebpay, and Wazirx.
India was once responsible for as much as ten percent of all Bitcoin transactions. It was in November 2017 that a government committee first suggested that cryptocurrency exchanges be shut down, and in December 2017 the country’s tax authority began investigating them, without revealing the reason why. At that point, the government had made it clear that cryptocurrency would never be legal tender in the country, but no official decision had been made explicitly banning its use.
Despite of ban cryptocurrency use exploded in the subcontinent, with some exchanges reporting hundreds of thousands of new users every month.
Prior to Tuesday’s hearing, industry participants were hopeful that the court may grant a stay on the RBI ban. Nonetheless, major crypto exchanges in the country have been trying to find banking alternatives.
Wazirx a cryptocurrency exchange from Navi Mumbai, is preparing to launch a P2P crypto transfer service to allow its customers to buy and sell crypto through its escrow service, bypassing the RBI ban.
Mumbai-based exchange Koinex is also preparing to launch their own P2P network called Loop. The exchange has already launched a crypto-to-crypto trading platform, as did Unocoin and Zebpay.
Latest news is that Mr. Sandeep Goenka (Co-founder Zebpay), discloses its plan to move to the Supreme Court on 5th July to obtain a stay order against RBI circular.
Re RBI circular writ in Supreme Court: SC did not grant stay. SC has asked RBI to revert within 7 days. Next hearing on 20th July. We will attempt out of listing hearing on 5th July to get stay on RBI circular till next hearing on 20th July. #bitcoin
— Sandeep Goenka ⚡️ (@GoenkaSandeep) July 3, 2018