The RBI is defending before the supreme Court

January 24, 2020 by Océane

Although the Reserve Bank of India (RBI) has not openly banned the crypto-trading, his decision to interrupt the provision of services to the crypto-businesses has caused the closure of many sites for the exchange of crypto-currencies. The RBI is keen to justify its decision.

A decision taken by way of prevention

In 2018, the RBI had urged all the country’s banks to stop providing services to crypto-platforms as well as to the business of crypto-currencies. Result, many crypto-exchanges and companies have had to put their key under the door, or cease to provide their services to local customers as a result of financing problems.
Feeling aggrieved by this decision, many companies have pleaded their case before the supreme Court in rétorquant that the RBI has taken a decision not in accordance with the constitution of the country.
The RBI, meanwhile, defends his point of view, claiming that she had not prohibited the trading of crypto-currencies, but had only taken these measures to protect the financial institutions against the risks associated with this asset class.

Malta and Japan are the references on the subject

Determined to eliminate this indirect censorship for citizens to gain access to new to crypto-currencies, crypto-indian community has referred to the exemplary case of Japan and Malta.
Apart from the question of non-compliance with the Constitution, the counsel for the petitioners has referred to in the complaint, the exclusion of the companies of crypto-currencies indian outside of the banking system does nothing to improve the situation.
In fact, Malta and Japan have managed to juggle with the presence of digital currencies and the need of regulation without sacrificing innovation.
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