The Reserve Bank of India (RBI), which issued an order to cut off crypto firms from the country’s financial system in April 2018, now says that it plans to return to the Supreme Court to fight the Wednesday ruling that overturned its ban.
The #RBI seems really determined to block #crypto in #India. Pretty sure #IndiaWantsCrypto. https://t.co/pzxPxZcjh3 via @coindesk #CryptoNews #cryptocurrencies — David G Zeiler ⚡️ (@DavidGZeiler) March 6, 2020
On March 6, it has been reported by Economic Times that the RBI will lodge a review petition over the court judges’ ruling that the RBI had not been balanced in issuing the order. Concerns that the restarting of crypto trading could pose a risk to the banking system were cited as the primary reason behind the central bank’s coming response.
However, some Indian cryptocurrency exchanges have already announced that they have reinstated deposits and withdrawals via bank accounts since Wednesday’s ruling.
Ashish Singhal, the Chief Executive of the CoinSwitch exchange, said:
“This is the first step towards embracing cryptocurrency in India, which has the potential of becoming one of the largest crypto markets.”
The RBI’s concern that this may result in cryptocurrency trading may already be moot, as many Indian cryptocurrency exchanges already resumed fiat deposits and withdrawals within 24 hours of the ban being lifted.
However, the court ruling stated that RBI had not conclusively shown that cryptocurrency trading was damaging. Unless it can do so, the Supreme Court is unlikely to alter its decision, despite the central bank’s protests.
The central bank may also face another issue, as many companies were forced to cease trading after the ban and may seek compensation.
Abhishek Rastogi, a lawyer representing one of the cryptocurrency platforms, explained:
“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.”
Thus, it has been analyzed that the nation’s crypto industry may face more years in limbo pending proper regulation from the government.