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.
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