The Reserve Bank of India (RBI) is reportedly seeking to file a review petition challenging the supreme court verdict which lifted its banking ban on the crypto industry. The RBI is worried that the court’s decision “could pave the way for trading in virtual currencies and put the banking system at risk.”
Also read: Indian Supreme Court Rules in Favor of Cryptocurrency — RBI Ban Lifted
Unhappy With Supreme Court Verdict, RBI to File Review Petition
India’s central bank is planning to file a review petition with the Supreme Court of India against the quashing of its circular aimed at curbing cryptocurrencies, the Economic Times reported Friday, citing people with knowledge of the matter. The news outlet detailed:
The central bank is concerned that the apex court’s decision on Wednesday could pave the way for trading in virtual currencies and put the banking system at risk.
The RBI issued a circular in April 2018 banning banks from providing services to crypto businesses, including exchanges. The ban went into effect in July that year and banks proceeded to close the accounts of crypto exchanges. The ban was imposed after the RBI issued several warnings regarding the trading of cryptocurrencies, including bitcoin, but crypto trading remained unaffected. The banking ban forced some crypto exchanges out of business, such as Zebpay, Coindelta, and Koinex. Zebpay recently relaunched in India.
Supreme Court Verdict Upholds Legality of Cryptocurrencies
The Indian supreme court said that the right to create something that does not violate any existing rule is an unsaid
