Last month, India’s central banks – The Reserve Bank of India has passed a regulatory order while asking other banks and payment services to immediately suspend their association and dealings with crypto operators and exchanges.
The order read: “… it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs [virtual currencies] or provide services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase/ sale of VCs.”
Following this, there was a huge uproar in the country’s crypto community who took this matter to the Supreme Court, the country’s highest judicial court. Recently, eleven different crypto representatives from crypto-related businesses and service had filed for a temporary injunction on the central bank’s order. However, as per the court’s documents. this plea has been denied for the moment and the case is still pending. The next hearing regarding this matter will take ahead this week on May 17.
— Crypto Kanoon (@cryptokanoon) May 11, 2018
This was first reported by Crypto Kanoon (@cryptokanoon) which is a team of Indian lawyers who look after the legal and regulatory analysis for the crypto sector. The group tweeted: “Supreme Court declined to grant interim injunction against RBI banking restriction. Fixed the matter for hearing on 17th May. “
There has been a huge and rapidly growing participation from Indian investors in the global crypto market. However, following the RBI’s decision a wave of fear and unrest has been set in the local crypto community.
RBI’s decision, however, has not gone well with the Indian crypto community who is seeking for some relief in the coming days.