This week, the Supreme Court of India refused a request for a temporary injunction against restrictions imposed on banks regarding cryptocurrency. The restrictions, put in place by the Reserve Bank of India, the RBI, include a ‘ban’ on crypto services, which now will remain in place at least until the formal hearing.
Reserve Bank of India and its war against cryptocurrency
It is no secret that the Reserve Bank of India, the central bank in the country, is not a fan of Bitcoin and cryptocurrency in general. In 2017, the government agency already warned citizens about the digital coins several times. Till 2018, however, it stayed with warnings.
In April of this year, the Reserve Bank of India suddenly turns on the pressure. No more warnings. The RBI announced a ban on the sale or purchase of crypto-currency. Because of the ban, banks registered in India and therefore under RBI’s regulation, but also other regulated financial organizations, are prohibited from dealing in cryptocurrency transactions.
Very bad news for cryptocurrency exchanges in particular, since most of them rely on banks for their business.
Legal battle against the RBI
In response to the ban, a part of the crypto community in India started a legal battle against the crypto trading restrictions from the RBI. The group that is standing up against the RBI’s decision includes four crypto exchange platforms and other startups active within the crypto space in India.
The group emphasizes the opportunities for a country like India when it would stimulate blockchain and innovation. According to them, this is not the first time that India has turned its back on an innovative technology. The government used to do the same with the internet. Therefore, the group that has come into action feels that history is repeating itself.
As part of the legal battle against the RBI, the group requested a temporary injunction against restrictions imposed on banks regarding cryptocurrency. This request has been declined by the Supreme Court of India.
— Crypto Kanoon (@cryptokanoon) May 11, 2018
All eyes are now focused on May 17, the day the case regarding the ban of cryptocurrencies in India will be heard in court. To be continued.