Finally, we are edging towards the unexpected closure of the courtroom battle about whether the digital currencies will be regarded as legal tender in India or not. Following the Internet and Mobile Association of India’s arguments, RBI was forced to act in response to the questions raised by cryptocurrency exchanges in the Supreme Court of India, about their decision to ban cryptocurrencies in India.
In April 2018, a circular was being issued by the Reserve Bank of India that instructed all the regulated financial services as well as units to cut off their existing relationships with every company and individual that are dealing with cryptocurrencies and also block all such crypto-related operations and transactions.
The final hearing date to reach the conclusion of the topic was set on Wednesday i.e. 25th September 2019, though a few are not expecting this to be concluded. However, a lot of cryptocurrency exchanges and wallet services were explicitly disappointed with all the listicles of the circular. Even a lot of Bitcoin exchanges came to the front by challenging RBI’s decision in the Delhi High Court after the distribution of the circular. That challenge was escalated to the Supreme Court almost immediately.
Most importantly, awaiting the Supreme Court judgement made things worse for all the cryptocurrency exchanges in India. SC was pushing the hearing dates since 2018 and several exchanges have closed their market already expecting the declaration will soon ban virtual currencies throughout the country. 2018 was proved to be a horrible year for the digital currency exchanges in India. More to the point, the regulatory hold-ups were also the reasons for the disappearing customer interest as prices fell over.
At this moment, all those traders, as well as the cryptocurrency exchanges, have their hopes pinned on the decision date, expecting clarity on the legal and regulatory fronts of Indian crypto exchanges. Many speculations have been noticed regarding the decision of the Supreme Court. According to some crypto enthusiasts, SC should bring in certain regulations for these virtual currencies rather than putting a ban on it.
Conversely, the traditional trading exchanges, as well as the banking industries, are hoping for the outcome to be negative as regulating digital currencies can have a huge impact on their existing trading volumes.
Sources said that a three judges’ bench was being assembled on Wednesday morning for the hearing of the case. The results can be both, either in favor of the virtual currencies or against those. As reported by sources, the three Honorable Judges are Justice Rohinton Fali Nariman, Justice Surya Kant and Justice V. Ramasubramanian. We will get to know their response soon. Let’s see how this RBI vs. crypto exchanges case comes up with.