The Reserve Bank of India (RBI) is ready to appeal the latest ruling by the Supreme Court lifting its ban on virtual assets trading and operations in the country. According to familiar sources with the matter, the central bank will file the review petition I a bid to convince the courts of the risks that cryptocurrencies pose on the financial system.
On Wednesday, the Indian crypto community celebrated one of the largest regulatory milestones yet as the SC lifted the ban on crypto transactions and use in India. The three bench judge gave a ruling that cryptocurrencies do not pose a problem to the financial system and do not break any law hence the lifting of the ban.
Since the ban was set in place in April 2018, a number of cryptocurrency firms and exchanges have shifted base moving to more crypto-friendly destinations such as Singapore and Japan. However, shortly after the ban was lifted a number of companies are planning going back to India, but the latest petition may kill off their dreams.
The ban lift not only gave crypto firms an opportunity to tap into the Indian market but also looks to increase the overall retail adoption and liquidity as exchanges move back in.
“Cryptocurrency exchanges in India can now legally operate for fiat-to-crypto trading pairs as well, in addition to crypto-to-crypto pairs. It remains to be seen how soon the banks will start supporting the exchanges.” – Sidharth Sogani, founder and CEO of Crebaco Global Inc.
Some analyst remain adamant the SC will not review the RBI petition any time soon, promising a crypto community growth within the country. One of the lawyers against the RBI, Abhishek A Rastogi, partner, Khaitan & Co, said,
“SC may look at the RBI’s review petition but as of now the cryptocurrency platforms can operate in India. Many companies have even gone bankrupt after the RBI’s diktat and they may also look to initiate action in this regard.”