We’re about half way through to the 3 month period and at the end of which all RBI regulated entities will have to stop providing banking services to any cryptocurrency related business in India. 5th July is the final date at the moment as per the circular issued by the RBI.
According to ‘Mohammed Danish is a lawyer practising at the High Court of Delhi in India,’ part of the Crypto Kanoon group has mentioned in his post that 4 new exchanges are taking their fight against RBI to the Supreme Court.
The Cryptocurrency exchanges who have moved to the Supreme Court, along with their Shareholders, against the RBI are:
- Coindelta Exchange run by Bitfair Technologies Pvt. Ltd., Gurgaon
- Koinex Exchange run by Discidium Internet Labs Pvt. Ltd., Mumbai
- Throughbit Exchange run by Throughbit technologies Pvt. Ltd., Bangalore and
- CoinDCX run by Neblio Technologies Pvt. Ltd., Mumbai.
I’ve reported earlier about CoinRecoil filing a petition in Delhi High Court against RBI’s circular and that is scheduled for hearing on 24th May, 2018 along with MoneyTradeCoin.com’s writ petition which was filed after CoinRecoil’s.
Suffice to say, many exchanges are fighting to reverse this unconstitutional order from RBI.
However, that is not all. A group of 11 individuals have filed a writ petition against RBI in the Supreme Court challenging RBI’s decision to ban basic banking services to these cryptocurrency exchanges.
Cryptocurrency trading or running an exchange itself is not illegal as per the current regulations or law. Banning essential services such as banking to a legal entity could possibly be illegal.
The Reserve bank of India on April 6, 2018 sent out a circular which mandated all regulated entities such as banks, payment gateway providers and mobile wallet companies to stop rendering services to cryptocurrency exchanges and other related businesses dealing with such crypto-assets in India. I’ve explained the situation arising out of the April 6th circular here.
As per the report on ET:
The petition came up for hearing before the court of the Chief Justice of India on May 11, 2018. The Supreme Court issued notices to the RBI and Union of India after hearing the petition. The matter has been listed for further hearing on May 17, 2018.
It's sad that top exchanges such as Unocoin and Zebpay are doing nothing about this so far atleast in their capacity as the top exchanges. They have moved their HQ to Singapore and are working towards being a crypto-crypto exchange and scaling up these aspects of their business instead of being bogged down fighting the Indian government. As per my source, there is no new development from these two companies.
However, smaller and newer exchange startups in India are taking RBI head-on. I hope to see more exchanges and individuals lining up to protect our sovereignty to use our money the way we see fit.
RBI's decision is resulting in many businesses from this domain moving to countries such as Singapore, Estonia, Australia and other nations which are open to cryptocurrency centric businesses.
Instashift for example is registered in Estonia while Unocoin choose to register itself in Singapore.
These issues has resulted in many Indian users fleeing cryptocurrencies at a major loss. Many Steemians from India have powered down, and some have disappeared. Let's hang on fellas. This is far from over.
Stay tuned for more updates on these legal proceedings. I will keep you factually informed on the latest developments on cryptocurrencies in India.
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
- Building A List Of Users From India—Please Fill This Form ASAP!
- Why You Should Vote For @firepower As Witness—Witness Campaign Post From India!
- Steem.Chat Contest #26
Given the uncertainty, I think supreme court will favor the government . Most countries will support once a proper regulatory scheme is in place.We just avoided the next crypto blood bath since SEC took a wait and see approach.If not all cryptos except bitcoin would have been labeled securities and either would have needed to shutdown or comply with securities law
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Supreme Court so far favours RBI but hopefully once all the facts are out I hope it will make the right decision. I've posted an update to this today.
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We (indian's) are waiting for tomorrow's judgment.
Honorable Suprim Court Of India is Our Last Expectations.
@firepower , please guide us for next step.
Thanks
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I never understood the ban on cryptocurrency currency in India. What was the reason, in one way or other anybody can invest in cryptocurrency even how much restrictions you place.
We are in an economy of crashing banking system. The only thing that can rescue India from this NPA burden is Blockchain, and we have to be so redundant to listen to any body.
Supreme Court is the hope, someone need to make atleast a single interview on national TV. Hope @firepower makes in one and make them to understand the benifits of blockchain.
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The government is protectionist and therefore banning is easier than spending time and effort in researching this industry in order to regulate.
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Hats off to these guys....................mad respect.
These are people who seize the initiative not for the profit but they understand the underlying power behind the technology and they dream of bringing it to the masses back again. This is the highest form of economic 'social service' that a group can do in India right now.
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that's great to hear. I hope this gets stopped by SC eventually
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My English is fatal and I can't understand this, the exchange of crypto is not illegal, so it is the banks that don't allow them to manipulate finances under any other premise than theirs? don't accept the digital economy?
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We have no regulation/laws that prevents setting up of a legal cryptoexchange. anyone can do it technically. however, banks (mostly all major ones) regulated by India's central bank are not allowed to provide services to such legal entities.
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In my country something similar happens, it is practically a hatred to achieve cryptographic exchanges.
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dear sir @firepower , thank you at the outset, for posting so beautiful in bitcoin,
In fact, Bitcoin's current market price has dropped a lot
Many of us know about Bitcoin, but the idea that Bertakayana has to be based on is not something we have in common. Not everyone is in the middle. We all do not know what is actually Bitcoin or how to invest it, we can get it. These ideas are not among many of us. Should give the correct idea,
All of us should be doing more like this with Bitcoin,
Because many of them will benefit from many of them presenting the correct ideas about Bitcoin,
Your post was very good about Bitcoin
Thank you so much for a post,
Be nice and post in the future with such beautiful Bitcoin,
Pray for you.
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Thanks for educating us GOD bless you @firepower
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I wish the judgement favour cryptos
I wish the entities are just go to the ashamed
I wish my fellow brothers and sisters are happy spending and investing in cryptos
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Wow, great news.Agree with you sir.Thanks for educating us GOD bless you @firepower
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Very disconcerting @firepower. I hope those Petitions can stop RBI.
Thanks for keeping us Steemians informed on this issue
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That's right these big exchanges have to do something to fight this rule of RBI amd because of this fud i noticed many active steemians are now disappeared and not using Steemit,and when i suggested Steemit to some of my friends then they simply ignore my suggestion by saying that cryptocurrency is dead in india so there's no point to join Steemit.
Well these all are looking on a smaller picture and not trying to see the future value of Cryptocurrencies.
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Yeah I've faced those issues as well recently. People are scared and for no real reason! Mostly because they are uninformed and this domain requires a lot of reading and understanding.
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@firepower , i voted you as witness , please check out my recent post for new users to understand more about the community , please upvote me if you like my work to encourage me , and you can resteem if you think its worth reading by your users...
https://steemit.com/steemgigs/@blackempror/an-absolute-comprehensive-beginner-s-steemit-faq-welcoming-and-familiarizing-new-users-steemit-newbies-guide
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Will check it out. :)
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Thanks for the upvote , @firepower , i hope u check my blog again for more quality content..
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Lets see what will be the out comes,by the efforts of 4 exchanges and 11 individuals .we are looking egarly about the good results and your sweet updates.Thanks for the informations,it is very difficult to deal with crypto by being indians as our govt system always have been playing a game with public.But we indian steemians are always optimistic .I think every thing will be all right.Good luck friend.
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Sir if india bans bitcoin what can we do,as steemit is my source of income.
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This is really sad for us.In this way we will be left behind in all aspects.Human society is build for the comfort of every one but by banning something which the people they are spoiling the society.
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RBI is scared about its existance. If all money will go in cryptos then what will happen to actual currency ? It will get drained. If all Rupee will get converted into cryptos, then what will be role of RBI of having nothing with them in Rupees ? So, it is possible that RBI is trying to save money in the form of rupees by not lossing everything to cryptos, so that RBI will continue to operate. For this, there is a need to think of saving both, rupees as well as cryptos. By saving rupees, RBI wil ..
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Fiat currency cannot be removed any time soon but cryptocurrencies can exist side by side easily.
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