The Indian Supreme Court on one petition against the crypto banking has put cryptocurrency owners in shock. However, the court did not grant a stay and the ban is authorized from 6th July onwards. Let’s find more on cryptocurrency banned by Supreme Court of India.
No Stay Granted on cryptocurrency banned by Supreme Court of India
The Indian Supreme Court on one petition against the crypto banking has put cryptocurrency owners in shock. However, the court did not grant a stay and the ban is authorized from 6th July onwards. Let’s find more on cryptocurrency banned by Supreme Court of India.
The Internet and Mobile Association of India (IAMAI) is behind the petition. The IAMAI members are following major crypto exchangers such as Unocoin, Zebpay, and Wazirx.
The central bank will issue a circular on April 6, to ban all financial institutions controlling cryptocurrency companies. Furthermore, the ban is effective from July 5th. In response to cryptocurrency banned by Supreme Court of India, a number of industry participants petitioned against the ban. Other than the In addition to the cryptocurrency, four other petitions will get hearing July 20.
Wazirx’s founder and CEO, Nischal Shetty, said that the Court will not grant a stay on Reserve Bank of India’s cryptocurrency banking ban. Along with the IAMAI petition, rest of the petitions will be heard on July 20. “ Now, all the eyes are set on the 20th” he further emphasized elaborating as follows:
“The IAMAI submitted a representation to the RBI which explaining blockchain, cryptos in a detailed document. Additionally, how they functions in India.”
However, the RBI said, “it will respond to cryptocurrency banned by Supreme Court of India within 7 days.” Unlike the ban, if RBI gets a deeper understanding of blockchain and cryptocurrency then they might go easy on the ban while putting some regulations.
What did Will Banks do After the Cryptocurrency Ban?
Prior to Tuesday’s hearing at court, industry participants and members were very hopeful about a stay on the RBI ban. On the other hand, major crypto exchangers are trying to find alternatives on cryptocurrency ban.
Wazirx is preparing to bypass RBI ban. Consequently, Wazirx will launch a P2P crypto transfer service. Especially, it will allow its customers to buy and sell crypto through Wazirx’s escrow services. CEO Nischal Shetty said that the new service will launch after banks stop providing services for crypto exchanges. He furthermore detailed his plan as follows:
If banks stop providing crypto services after July 6th then we’ll launch P2P. Therefore, all eyes are on banks to see what they will do? Or else they will wait for July 20th hearing?
Correspondingly, Koinex a crypto exchange company is too preparing for the launch of their own P2P network known as Loop. Koinex exchange previously launched a crypto-to-crypto trading platform. Thus the same was done by Unocoin and Zebpay. Sathvik Vishwanath, Unocoin’s CEO and co-founder said that this exchange will work on banking alternatives.
Also as per RBI’s recent notification on ‘Prohibition on Dealing in Virtual Currencies’, the banking relationships will disrupt on or before July 5th, 2018. Therefore, every crypto exchanger is planning to deploy new mechanisms for deposits and withdrawals of INR.
What are your thoughts on cryptocurrency banned by Supreme Court of India? What decision will the court take today? Let’s know in the comments section below.
