India courts rule against lifting cryptocurrency banking ban

03 Jul, 2018
by Will Heasman
News
India courts rule against lifting cryptocurrency banking ban

In an update to the highly anticipated ruling on the Reserve Bank of India’s (RBI) service blockade to cryptocurrency exchanges; the courts ruled against a temporary stay against RBI’s banking restriction.

Back in April of this year India's central bank - RBI – issued a call to arms to every regulated financial institution in India to deprive any business within the cryptocurrency sector of any financial services. The RBI gave a 3-month deadline, which concludes in 2 days, on the 5th of July.

The response to this move was large with multiple exchanges across the country filing petitions to courts stating that the policy was “arbitrary, unfair and unconstitutional”. Eventually, the supreme court stepped in to consider the matter.

Which brings us to today, with the courts ruling against a temporary stay. Speaking to Quartz a partner at the law firm representing the exchanges was quoted as saying:

“now that the ban will continue, the banking route for the exchanges and its users will be completely choked …"

  

Despite the bitterness of today's outcome, hopes remain high for the future after Subash Chandra Garg, India’s secretary of economic affairs, confirmed that plans for crypto regulations were underway:

"We are fairly close to developing a template that we think is in the best interests of the country. We have prepared a draft which we intend to discuss with the committee members in the first week of July.”. 

The war isn't over just yet, eyes are now cast towards the next hearing on July 20th.

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