Not Yet Over? RBI to Appeal For Its Quashed 2018 Circular

Ibiam  |  Mar 6, 2020

The Reserve Bank of India (RBI) won't give up the fight against cryptocurrency in the country quickly. A report by Economic Times revealed that the central bank is looking to appeal for the Supreme Court verdict on Wednesday.

SC ruled in favour of cryptocurrency in the country, in contrast to the RBI 2018 circular. According to people familiar with the matter, the central bank plans to file a review petition in the Supreme Court due to the defected circular.

The central bank still stands on the ground that digital currencies trading alongside the Court's decision poses risks to residents, and mostly, it will affect the integrity of the country's system of banking.

However, the central bank was unable to give a concise explanation of how crypto trading was damaging to the entities it regulated, according to the bench.

SC verdict on Wednesday is a big blow for the RBI 2018 circular, given that several crypto-related platforms that moved out of India due to the ban are reportedly considering coming back to the country.

Secondly, banks in the country have started allowing customers to link bank accounts to cryptocurrency exchanges, perhaps, facilitating trading. These developments will be too hard for RBI to digest (at least for the moment), given that they already barred regulated financial entities from involving in crypto.

Supreme Court Support For Cryptocurrency

The Supreme Court noted that the right to create or develop anything that doesn't violate or affect any rule in existence is an unsaid fundamental law. Thus, residents in India possess the right to create a new industry of digital currencies, including exchanges. They also have the fundamental right to trade as well.

The founder and CEO of Crebaco Global Inc., Sidharth Sogani, said in the report:

"In a way, the verdict upholds the legality of cryptocurrencies and decriminalizes the investors who have already invested in various crypto assets like bitcoin, ether, and various others."

Articles That Might Interest You,

    Related News