Breaking news this morning from India. This month, India’s central bank, the Reserve Bank of India (RBI) implemented restrictions on cryptocurrency engagement which would eventually lead to punitive measures taken against RBI’s customers who continue to engage in cryptocurrency related activity despite warnings from the RBI.
This, was met with huge resistance both from Indian nationals and crypto-enthusiasts across the globe. Soon after the announcement, an online petition was set up and many international groups spoke out against the new regulations. Overall, this was seen as an attack against an emerging technology, something which India really should be behind, given how huge the blockchain revolution is within their shores.
A report out today however states that the Delhi High Court are now demanding an explanation and justification with regards to this move, from the RBI.
According to Cryptovest.com:
“The court order came after Ahmedabad-based CoinRecoil (Kali Digital Eco-Systems Pvt Ltd) asked the High Tribunal to declare RBI’s circular of April 6, 2018 unconstitutional. The document was issued under the title Withdrawing Banking Support to Virtual Currency Exchanges.”
This, is a turning point in the favour of the campaigners who are establishing movements to overturn the RBI’s ruling. In continuing the saga, last week a number of India based cryptocurrency exchanges also challenged the RBI’s decision, demanding that verbal agreements need to be made before such regulations can be implemented.
It does seem that the online petition, initially established to counter this move, has acted as a pivot point for the Delhi High Court, helping them to develop a strategy through which the high court can now finally approach the RBI for answers.
According to Cryptovest.com:
“Justices S Ravindra Bhat and AK Chawla issued a notice to the RBI, the finance ministry, and the GST Council, asking them to comment on the petition by CoinRecoil. The Delhi High Court has scheduled the next hearing for May 24, 2018.”
With this in mind, we should expect further developments this month. The 24th of May seems to have been set out as a sort of deadline, by which the RBI need to have their justifications ready.
During this time now, we expect trading to slow in India, as technically, until the discussion has taken place and until the High Court publish new rulings, the RBI’s regulations still stand.
However, whilst many have written off India as a part of the future of blockchain, now, it seems there is some light at the end of the tunnel. Of course, the RBI may very well be able to justify their decision, if so, not a lot will change. In that case, at least this is a live demonstration of democracy, we can’t say we didn’t try.
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