The Reserve Bank of India (RBI), the country’s apex bank, is planning to file a review petition in the Supreme Court against the latter’s decision to reject a ban on crypto trading, reported The Economic Times.
The central bank is worried that the ruling could boost cryptocurrency trading and jeopardise the banking industry.
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However, many are skeptical of whether the review petition will bear fruit.
Among them is Khaitan & Co partner Abhishek Rastogi who had earlier filed a case for a virtual currency platform.
Rastogi stated: “SC may look at the RBI’s review petition but as of now the cryptocurrency platforms can operate in India.
“Many companies have even gone bankrupt after the RBI’s diktat and they may also look to initiate action in this regard.”
The central bank prohibited cryptocurrency trading in 2018, highlighting the inherent risks involved and also likened it to a Ponzi scheme.
Crypto exchanges, startups, and industry bodies challenged the decision and recently, the Supreme Court of India lifted the restriction.
With the end of the ban, customers of banks will be able to link their accounts to virtual currency platforms.
The previous restriction resulted in the movement of several crypto platforms to Singapore.
They are now planning to relocate to India after the lifting of the ban.
The move was welcomed by many including blockchain and cryptocurrency research firm Crebaco Global.
Crebaco founder and CEO Sidharth Sogani said: “In a way, the verdict upholds the legality of cryptocurrencies and decriminalises the investors who have already invested in various crypto assets like bitcoin, ether, and various others.
“Cryptocurrency exchanges in India can now legally operate for fiat-tocrypto trading pairs as well, in addition to crypto-to-crypto pairs. It remains to be seen how soon the banks will start supporting the exchanges.”
