Lateral RBI’s Circular given on April 6, the three-month time frame window until July 5 for the banks to end all their existing dealings and business in digital currencies and stop providing accounts to users dealing with such cryptocurrencies.The Supreme Court now has gave the central bank of India a week’s notice asking reply following a hearing on July 3rd, of the petition by the Internet & Mobile Association of India ‘IAMAI’ against the ban.
RBI’s Report to Supreme Court
The central bank of India’RBI’ has submitted a report, as directed by the country’s Supreme Court after the hearing on July 3rd during IAMAI petition hearing i.e on July 11th.
As per the CEO of crypto exchange Wazirx, the representation submitted by the Reserve Bank Of India ‘RBI’ is “a detailed document explaining blockchain, cryptos and how they function,” noting that it was “made with the belief that if the RBI gets a deep understanding of blockchain and crypto then they may go easy on the ban and think about regulations.”
According to the CEO of Indian crypto exchange Pocketbits, RBI’s reply is a “2 page generic response.” While stating that “as of now the response cannot be made public” but there is “not much to read though,” he stated.
Supreme Court Hearing on July 20
The central bank issued a circular on April 6 banning all financial institutions under its control from providing services to companies dealing in cryptocurrencies, including crypto exchanges.
RBI gave banks three months to sever their relationships with crypto businesses. As the ban went into effect on July 5, banks began closing accounts of crypto exchanges. One by one, the exchanges stopped supporting fiat deposits and withdrawals.
To bypass banking restrictions, a number of exchanges are launching peer-to-peer (P2P) trading services. Koinex and Coindelta are reportedly launching their P2P services on July 15. Wazirx, on the other hand, already launched its P2P service. The company wrote, “Wazirx P2P goes live today, 10th July at 3PM. With Wazirx P2P, a buyer and seller can buy and sell cryptos for INR directly with each other.”
Meanwhile, industry participants and stakeholders are trying to get the RBI ban lifted by filing petitions with the Supreme Court, which will all be heard on July 20.