Indian Supreme Court’s Failure to Pass a Judgement On Crypto is a Disaster for the Community
On March 29th, the Supreme Court of India was supposed to pass judgment on crypto. This was after a long string of delays and reevaluation. However, like the previous hearing dates even this was a disappointment with the Supreme Court shutting down the trial in less than 2 minutes. Now the hearing date is postponed to July 2019 essentially giving the burden to the next elected government. Some of the exchanges have fought the ruling in court, but the Indian supreme court has delayed making a decision over and over again.
Despite Bitcoin struggling at $5.2K, the cryptocurrency has given higher returns on investments compared to oil and gold in the last two years. the Reserve Bank of India (RBI) recently released a draft ‘Enabling Framework for Regulatory Sandbox’ that will allow fintech startups to test within a regulatory sandbox.
RBI Executive Director S. Ganesh Kumar said:
“RBI’s Hyderabad team is currently working on the frameworks’ technology and they are looking into these aspects.”
The Investor Education and Protection Fund (IEPF) Authority, which comes under the Ministry of Corporate Affairs and looks at protecting the interest of investors has now openly favored a crypto ban in the country. IEPF CEO Anurag Agarwal said:
“Cryptocurrencies are like Ponzi schemes and must be banned. When it comes to investor protection, the IEPFA has to take a stand against certain things. Against Ponzi schemes, we are taking a stand.”
Although these events haven’t stopped the trading of cryptos on Local Bitcoin. The weekly volumes have been soaring and show no signs of slowing down. The banking limitation has forced Indian exchanges to improvise and change their business models. Some originated crypto-only trading while others launched escrowed peer-to-peer (P2P) services. A number of exchanges have reported a rise in demand for P2P trading.
Notably, the national government of India is putting the final touches on the
“Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019” document.
This bill has been circulated to those government agencies that have some relevance to its subject matter. The final version of the bill will likely be submitted to the next Indian government that will take control once the elections in May are concluded.