India's Central Bank Plans to Fight Supreme Court Crypto Ruling
The Reserve Bank of India reportedly plans to return to the supreme court to ask for a review of a ruling that overturned its ban on banking access for crypto firms.
While the Indian cryptocurrency industry has won a court battle over a central bank ban on banking access, the war may not yet be over.
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 it plans to return to the Supreme Court to fight the Wednesday ruling that overturned its ban, according to an Economic Times report Friday.
The RBI will lodge a review petition over the court judges' ruling that the RBI had not been balanced in issuing the order, sources said. 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.
Since Wednesday's ruling, some Indian cryptocurrency exchanges have already announced they have reinstated deposits and withdrawals via bank accounts. Local commentators are predicting a surge in crypto activity in India, where for two years exchanges have been forced to either close, leave the country or turn to solely crypto-to-crypto trading.
“This is the first step towards embracing cryptocurrency in India, which has the potential of becoming one of the largest crypto markets.” Ashish Singhal, chief executive of the CoinSwitch exchange, told CoinDesk after the court's ruling.
Should the RBI be successful in persuading the court to change its mind on the issue, the nation's crypto industry may face more years in limbo pending proper regulation from the government.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.