Crypto News Flash #162: Indian Supreme Court Denies The Interim Injunction Against Reserve Bank Of India's Crypto Ban Decision !!
Last month, Indian Central Bank (Reserve Bank Of India) banned all the Indian banks to provide any services to any crypto related business including Cryptocurrency Exchanges. Although, RBI has given an ultimatum of 3-months to settle all business between crypto-related businesses and Banks.
Following that decision, some crypto start-ups have filed petitions against RBI crypto ban and the first hearing was scheduled on 12th May i.e. today.
Unfortunately, Supreme Court of India has declined the Interim injunction against Reserve bank of India as per Crypto Kanoon.
Crypto Kanoon is a team of Indian lawyers dealing the cases related to crypto business. According to their latest Twitter post, Supreme Court Of India has declined the petition filed by crypto-related start-ups in India.
There were 11 representative who filed petitions against RBI Crypto ban decision. Court documents confirm that the injunction was denied and the case is still pending. The case will be heard again on May 17.
Interim Injunction is a kind of provisional measure which can be taken, before legal proceedings, to do a specific act or refrain a person to do a specific act.
Last month, RBI prohibited every commercial bank to provide services to any crypto related business with a grace period of 3 month.
The official circular of RBI related to crypto ban are as follows:
“… it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs [virtual currencies] or provide services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase/ sale of VCs.”
Now, this denial by the Supreme Court might increase the problems of crypto related start-ups in India and future of cryptocurrencies in India might suffer many setbacks.
The final decision on this matter will come on 17th May. Let's hope it would be in favor of crypto start-ups and we could hopefully see cryptocurrency's widespread use in India.
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