Indian Supreme Court Endorse Cryptocurrency Banking Ban

The Supreme Court of India has refused to tell the Reserve Bank of India to give up its decision to keep the banks free of cryptocurrencies.

On April 05, the RBI had issued a circular to all banks which prevents regulated entities from rendering services to any individual or company that operates in digital currencies, and to stop allowing their own retail clients from purchasing cryptocurrencies through their banking accounts within three months.

Breaking! Supreme Court of India refuses to grant temporary stay against RBI's banking restriction against Crypto. Stay tuned for further updates! #rbiupdate

— Crypto Kanoon (@cryptokanoon) July 3, 2018

The decision to ban the nation’s banks from making deals with crypto firms was made in April and the ban would take full effect from July 06.
Rashmi Deshpande, associate partner at Khaitan & Co, a law firm representing Kali Digital Eco-Systems, an Indian exchange planning to begin operations later this year said:

“This is a win for the RBI and a big blow to virtual currency exchanges and traders.
In our earlier request to the RBI as well, we had asked it to extend the deadline by a month after the July 20 hearing,” “However, now that the ban will continue, the banking route for the exchanges and its users will be completely choked,” Deshpande added.

A draft of cryptocurrency regulations will be presented at the hearing scheduled for the 20th of July.

Despite the setback, cryptocurrency exchanges remain hopeful after encouraging statements from India’s ruling central government. At least two cryptocurrency exchanges will be launching new services to avoid using banks, according to the Economic Times of India. WazirX, a cryptocurrency exchange from Navi Mumbai, has announced a peer-to-peer transfer service which will begin as soon as the ban comes into effect.