Author: Jagdish Kumar, India
With Indian Supreme Court asking crypto exchanges operating in the country to approach the Reserve Bank of India with the concerns, many exchanges have started giving representation.
This comes after many exchanges have filed a petition in the various courts, on which the apex court directed all the High Court not to pass any order and club all the petition together for hearing in the apex court on 20 July 2018.
However, the court while hearing a petition filed by the exchanges directed the exchanges to make representation to RBI and how can offer alternatives and gave them two weeks, so that RBI can look into their proposal and decided whether they are working as per the law or not.
In their request, various exchanges have asked RBI to first remove the blanket ban and even asked to extend the time by another three months, so that they have more time to present their case to the RBI and the courts.
A petitioner said that many exchanges have started complying with the RBI order, one such issue was of know your customer – anti-money laundering (KYC-AML), which has been implemented.
With the anticipation that RBI ban will not be lifted many exchanges have not shifted to crypto-to-crypto trading platforms, as against the fiat trading they were doing earlier by Zeppay, Koinex, BuyUcoin, Unocoin and others.
According to an estimate there are five petition in the court against the RBI’s April 2017 ban that will be heard by the court.
For cryptocurrency exchanges, the uneasy situation remains in place, as they are not able to access domestic banking services. RBI has also directed banks not to deal with crypto exchanges too. That is not a positive development for the industry as a whole, especially in India.
Image credit: cryptona.co