India crypto ban: According to various media outlets, the Reserve bank of India (RBI) will succeed in its ban on cryptocurrencies starting July fifth.
India’s Supreme Court has refused the extension of the grace period in which cryptocurrency entities could continue their banking services. This means that businesses that handle digital currencies will no longer have access to banking services domestically.
India Crypto Ban
This morning, the Supreme Court was presented a petition by the Internet and Mobile Association of India (IAMAI) against the cryptocurrency banking ban. The IAMAI holds members that include major domestic cryptocurrency exchanges in India, such as ZebPay, Unocoin, and Waxzix.
Prior to this hearing, many industry participants were hopeful that the court would revoke the ban. Nonetheless, the major Indian cryptocurrency exchanges have been exploring other banking alternatives, just in case – and good thing too!
The ban will take place on July fifth, but the Supreme court will hear four other petitions on July 20th.
Nischal Shetty, Wazirx’s CEO, said:
“The IAMAI had [also] submitted a representation to the RBI which was a detailed document explaining blockchain, cryptos and how they function. The RBI has said it will respond to that within 7 days….The representation 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.”
The ban may be in effect for a few weeks, but could potentially be revoked the same month. Crypto exchanges are looking ahead and coming up with alternatives in the meantime. Wazirx is planning on launching a PRP crypto transfer service that will allow its users to sell and buy cryptocurrencies through its escrow service, which bypasses the RBI ban.
Koinex is also planning on launching its own P2P network named loop. Currently, Koinex, Unocoin, and Zebpay hold their own crypto-to-crypto trading platforms.
The question remains, will the cryptocurrency market take a hit if the banks follow through with their ban? Do you think they will hold off on the ban until their hearing on the 20th? We shall see.
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