India is having its 2nd hearing against the bank ban imposed by the Reserve bank of India in the Supreme court tomorrow morning. While the hearing is not supposed to pass the final verdict yet, it can still pass an interim order to apply a stay on the banking ban and allow exchanges to continue their business.
Banking ban for Cryptocurrency businesses
The reserve bank of India announced a banking ban for cryptocurrency companies in India on April 6 and gave businesses 3 months time to shutdown. Many businesses filed petitions against the ban and all the cases were directed to supreme court for hearing. IAMAI’s petition had a hearing against the ban on July 5th where the court declined to grant a stay against the order and gave RBI a 7 day time to provide reasons for the ban and the next hearing is scheduled to be on 20th July i.e tomorrow. RBI responded with citing investor protection in its response. The response wasn’t made public.
Cryptocurrency regulations in India
Last month, Department of Economic Affairs secretary Subhash Chandra Garg told ET Now in an interview that a draft for cryptocurrency regulations is supposed to ready in the first two weeks of July but it is 19th july and nothing has been released yet. While all this has been going on, the income tax department is still sending out tax notices to the people involved in crypto currency trading. The last circular that was spotted floating around the internet was dated 2nd July.
There is a large number of engineers currently working in cryptocurrency companies in India. Consensys, the company behind Ethereum, also inaugurated its first office in Delhi last week. A banking ban on cryptocurrencies in India will just leave India behind in the technology race while allowing other countries to take advantage of India’s blockchain talent.
If you are interested in following tomorrow’s hearing on the cryptocurrency legality in India, you can join Indiabits, a telegram group of Indian crypto community. Let us know what you think is going to happen tomorrow in the comments below.