All eyes were on the Supreme Court of India as it judged the awaited hearing of Internet and Mobile Association of India (IMAI) vs Reserve Bank of India (RBI) on the decision about the decision that the RBI took to forbidden banks on providing services for cryptocurrency traders.
According to the decision of the Supreme Court, the banks still have to comply with the law until July 5. A further hearing will be made on July 20 to decide for once and for all if the banks will be allowed to continue or not.
The CEO Of WazirX Comments On The Decision
The CEO of WazirX, the top crypto exchange in the country, Nischal Shetty, has told the media the plans of the company after the hearing. He considered the decision of the Supreme Court of India to be a positive one because it lets everything be solved at the official hearing in July 20.
WazirX is part of the Internet and Mobile Association of India. He advocates for the regulation of cryptocurrencies in the country because most of the world is currently doing it, so India should do the same. According to the CEO, the company, the RBI has already been notified of the demands of the organization.
According to him, the RBI has not yet made a serious effort to study and understand how the cryptos work before banning them from the country. He believes that blockchain is the future of finances and technology, so it is a bad decision to simply decide to ban them.
After The Ban, WazirX Will Use P2P Transactions
The CEO of WazirX has stated that there will be a period of disruption after July 5. According to him, even if there is no direct bank access, there will still be ways to trade Bitcoin for INR. The company will use a P2P solution to allow the Indian investors to convert fiat into crypto and vice versa in the absence of direct banking channels.
According to the CEO, no law states that cryptocurrencies are actually illegal in India, so it will be possible to make P2P transactions. He makes a comparison with a second hand car market because you exchange the money for an asset with other person directly. The banks may be forbidden to participate but nothing is stopping the individuals to keep trading their cryptos, so they can continue to buy and sell them.
Obviously the transactions will not be 100% smooth. If some transaction took 20 to 30 minutes before, it could easily take 2 to 3 hours now, but there will still be liquidity in the market.
Panic Selling Is To Be Expected
Nischal Shetty has also commented on panic selling after July 5. According to him, it will be unfortunately a reality that this will happen because not everybody will know that they can do the P2P transactions via the company, so it will probably lead a lot of people to panic selling.
According to him, this is very unfortunate because they will soon perceive that it was not a good time to sell but the money will be lost. Because of this, the company is advising everybody that they can do it differently and use the P2P exchanges on WazirX.