In the latest development over the ban of a financial institution to provide any aid to Indian cryptocurrency exchanges by Reserve Bank of India (RBI), Supreme Court has asked exchanges to present this matter to the RBI.
As suggested by India’s highest court, Indian cryptocurrency exchanges have moved towards RBI and had already sent the pleas to the central bank. Just to remind you Reserve Bank of India (RBI) has asked all the banks and financial institution of the country not to support any kind of companies dealing in virtual currency and to confront it, Indian cryptocurrency exchanges filed the case against this restriction.
Supreme court has decided to listen to the plea on July 20 and directed the virtual currency exchanges to directly request RBI for this.
As per the news, these exchanges have provided different suggestions to the RBI including a new strong KYC (Know Your Customer) check including passport.
According to Anirudh Rastogi, Tanikella Rastogi Associates (TRA) Law’s managing partner, who is representing Indian Cryptocurrency Exchanges and has filed the supreme court petition told that this ban will be counter-productive and they have suggested that some regulation should be made by government or RBI for this.
Some other firms have also requested to extend the period given by RBI. According to old circular, they have 3 months for this. After 5th July 2018, the banks won’t be able to support the Indian virtual currency exchanges. They have asked to extend this timeline to 31st August 2018.
It has been also observed that many India-based exchanges like International Digital Asset Platform (IDAP) has started looking to register their exchanges outside India and others have started crypto-to-crypto trading like Zebpay, Koinex, etc.
As we speak, the Indian government has formed a committee under Subhash Garg, the secretary of economic affairs in the finance ministry, to prepare a draft virtual currency law. Hope they come up with some positive news soon.
Do not forget to let us know your views about this and what do you think of RBI’s ban on financial institution dealing with cryptocurrency firms. For more latest news, do subscribe us and follow us on Instagram, Facebook and Twitter.