Reserve Bank of India’s Crypto Trading Ban Eyes September 11 For Next Hearing

Cryptocurrency Prohibition By The Reserve Bank Of India Continues Until September The 11th

The Reserve Bank of India (RBI) decided to impose a ban on cryptocurrencies that affected the whole market in the country. At the same time, banks and financial institutions in the Indian territory cannot convert digital currencies into the local currency, the Indian Rupee (INR).

On July the 20th, there was a hearing of lifting the ban, but the Supreme Court of India has no laid the ban off. There will be a future hearing that is going to be held on September the 11th, 2018.

Paties, individuals and ventures are able to file a reply to the petition before the hearing. In order to do so they have 4 weeks to present it.

According to some reports, there were limited arguments on the Internet and Mobile Association of India (IAMAI) and the RBI on July the 20th. As the SEBI did not fil a response to a petition that was seeing regulations, the Court decided to direct for completion of pleadings later this year, in September.

At the beginning of July, the Supreme Court of India (SC), held a hearing between IAMAI and the RBI. The matter couldn’t be solved and it reached July the 20th, and now it has been postponed for September.

Sharan Nair, Senior Vice President Marketing Business Development at CoinSwitch, said that the Indian context around virtual currencies is not easy. He explained that it is not easy to bring in regulations to this market and that when it takes time to be analyzed it means that there is enough time for evaluation for companies operating in the space and for lawmakers.

Moreover, he said that a decision made today would be ‘bad for the ecosystem.’ At the same time, he mentioned that scammers and other ‘shady’ companies can go away from the market.

The Twitter account known as BlockchainLawyer, said:

Adding : With 4 weeks time for admission of submissions by all parties in the matter. The key is how those submissions shall be drafted to justify the validity of cryptos in India. https://t.co/RkrFmkcUru

— Varun | Blockchain Lawyer (@Blockchainlaw91) July 20, 2018

It will be very important to follow how the events will develop and which conclusion the RBI will take on the matter. Some countries that decided to ban virtual currencies in the past, are now reconsidering the ban and trying to move forward with regulations that would let the industry flourish in a comprehensive regulatory framework.