The supreme court of India had earlier on suggested that all the Indian virtual currency exchanges whose operations had been banned should forward their cases to the Reserve Bank of India (RBI). They have since forwarded letters to the country’s central bank, providing alternatives to the ban that had been imposed by the RBI.
The Suggestion By The Supreme Court
In April 2018, India’s Central Bank ruled that all financial organizations working under it should cease providing Cryptocurrency exchanges as well s other businesses related to the virtual coin within a period of three months. This directive was not taken lightly by a section of cryptocurrency exchanges, which opted to take the central bank to court. However, all their writ petitions were instead forwarded to the Supreme Court.
The Supreme Court then opted to listen to the petitions challenging the RBI bam on the 20th of July 2018 and even ordered the affected parties to get in touch with the central bank to have their requests considered. The Supreme Court further directed the crypto exchanges, traders, their shareholders as well as other concerned parties to present their cases to the RBI within two weeks.
Requests Made by the Crypto Exchanges
RBI had a number of suggestions presented to its table. Some of the exchanges dealing with Bitcoin have asked the Reserve Bank of India to take away the blanket ban and asking if it could be instead enforced on the organizations that operate against the market norms.
One petitioner was even willing to disclose some of the measures they have suggested to help them in improving the Know Your Customer / Anti-Money Laundering practices, which includes even the details of passport. According to the managing partner for TRA Law, Anirudh Rastogi, a ban can be described as counter-productive and so there should be proper rules that can address the concerns raised by both the central bank and the government.
More About the RBI Ban
So far, five petitions have been successfully filed. In May 2018, the Supreme Court, ruled that no other courts shall be allowed to accept more cases related to the Cryptocurrency petitions as all the pending ones were moved to the highest court in India, The Supreme Court.
With hopes that the order by RBI would take effect, a number of Cryptocurrency exchanges in India are moving their services away from fiat and coming up with crypto-to-crypto trading platforms, instead. For instance, an established crypto exchange platform, Unocoin introduced a brand new trading platform that contained a total of fifteen virtual coins barely a week ago. Others such as Koinex and Zebpay have also come up with both their crypto-to-crypto exchanges.
At the moment, the Indian authorities are working on the framework of ensuring that all Cryptocurrencies are regulated and are operating within the law. The country has formed a special committee that is headed by Subhash Garg. Mr. Garg is the current secretary of Economic Affairs in the country’s Ministry of Finance.