The Reserve Bank of India (RBI) is planning to appeal the decision by the Indian Supreme Court last week which overturned the RBI’s instructions to banks to not deal with cryptocurrency exchanges. The Indian-based Economic Times says that the central bank will not give up its fight to curtail the influx of cryptocurrency proceeds into the economy, apparently concerned that the decision could “pave the way for trading in virtual currencies and put the banking system at risk.”
Two Year Battle Potentially Not Yet Over
Last week’s decision by the Supreme Court reinstated a link between cryptocurrency exchanges and traditional banks that had been severed for almost two years, ever since the RBI introduced the ban in April 2018. This ensured that cryptocurrency businesses had their bank accounts frozen and were prevented from opening new ones, meaning that customers could not withdraw or deposit fiat.
After a near on two-year fight, the ruling was finally judged to be unfair by the Supreme Court who last week reversed it. This led, claims the Economic Times, to many Indian crypto businesses who had been forced to move to Singapore to consider moving back again.
Exchanges Get Back on Their Feet
They might not want to be too hasty however, as the newspaper cites “people with knowledge of the matter” as saying that the RBI will seek a review by the Supreme Court. For the time being however, cryptocurrency exchanges can once again enjoy the privilege of a bank account, with some of the companies who went bankrupt after the RBI ruling in 2018 apparently considering whether to file charges against the RBI.
Any review would take months to be processed, meaning that crypto businesses in the country have some time to try and make up lost revenues and reconnect their customers to the wonders of cryptocurrency.