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The Reserve Bank of India deceived to appeal against the decision of squashing the banking ban on cryptocurrency

The Reserve Bank of India (RBI), the country’s central bank, has deceived to appeal against the recent decision of the Supreme Court squashing the banking ban on cryptocurrency companies. The central bank is concerned that lifting the ban could pave the way for virtual currency transactions and put the banking system at risk.

On March 4, the Indian Supreme Court overturned RBI’s ban on cryptocurrencies, once again allowing digital asset exchanges to operate in the country. Regulators from the cryptocurrency industry are optimistic about the ruling, which has opened up a huge market for cryptocurrencies for the first time in nearly two years.

According to the local news outlet Economic Times, this decision has not been officially revealed by the central bank. This comes as the ruling of the top court was made on Wednesday in a landmark sentence after delaying a few months to hear the arguments.

If RBI wants to appeal to a court ruling, they must approach a higher judge, but their decision to accept the appeal rests only with the court. The central bank is reportedly concerned about the negative impact the ruling will cause on the country’s banking system.

Still a hostile environment for cryptocurrency?

The ruling was taken against a circular issued by the central bank of India in April 2019, banning all banks under its consideration to stop providing fiat-based services to exchanges. Cryptocurrencies and companies in the industry with an ultimatum of 3 months.

This has caused a major change in the Indian cryptocurrency market with declining volumes, forcing many exchanges to move their facilities abroad and even shut down their services permanently.

However, many people have circumvented restricted banking access by introducing peer-to-peer trading services to continue trading on the market.

On April 5, 2018, the RBI barred banks from dealing with any crypto-related companies, stating that entities regulated by it could not deal with or provide services to any individual or business entities dealing with or settling virtual currencies (VCs).

The lack of banking services makes local cryptocurrency exchanges nearly impossible to handle deposits and withdrawals, with many companies ceasing operations or relocating. For the past two years, leading Indian cryptocurrency companies have been campaigning against RBI’s decision, fighting it in the Supreme Court. News of the lifting of the ban led to the skyrocketing price of WRX, native token WazirX, an Indian cryptocurrency exchange that has just been acquired by Binance.

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