Reserve Bank of India Plans To Return To The Supreme Court To Fight Crypto Ruling
Reserve Bank of India Plans To Return To The Supreme Court To Fight Crypto Ruling
March 7, 2020
Reserve Bank of India Plans To Return To The Supreme Court To Fight Crypto Ruling
Reserve Bank of India Plans To Return To The Supreme Court To Fight Crypto Ruling
March 7, 2020

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.

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.

ALSO READ :  Former Microsoft Engineer Volodymyr Kvashuk Sentenced To 9 Years For Stealing More Than $10 Million In Digital Value

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.

Source: |


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Nvidia Celebrates After A Judge Nixed The Lawsuit

Nvidia Celebrates After A Judge Nixed The Lawsuit

Nvidia, the top GPU manufacturer, is celebrating after a judge nixed the lawsuit by accusing it of misleading investors by “understating” GPU sales to crypto miners. It has been reported that a three-year-old lawsuit...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.