On Friday, the Supreme Court of India broke the hearts of many when it adjourned the petition to revoke the Crypto banking ban to mid-July. In February, the court gave the government a two-week ultimatum to come out with a regulatory policy to cover the cryptocurrency industry.
There was high anticipation from the global Crypto community especially those in India that yesterday’s sitting will finally deliver victory to them. However, at the behest of the Counsel for the Union of India, the petitioners and whoever is interested in the case have to wait until the next four months.
The development continues to undermine the digital currency market in the Asian country resulting in low volumes and a high cost of operation. In fact, since the ban in 2018, some companies have relocated to jurisdictions where regulations are friendly while others have actually ceased operations.
Background of Petition
In an announcement on April 6 2018, the Reserve Bank of India (RBI) prohibited financial institutions under its authorisation from delivering services to cryptocurrency exchanges. In the same month, a group of individuals and entities comprising of Kali Digital EcoSystems, the Internet and Mobile Association of India (IAMAI) amongst others appealed to the India Supreme Court to repeal the central bank’s directive.
Since July 2018, banks have desisted from dealing with companies and individuals doing business with Cryptocurrencies going as far as closing their accounts. The fallout has been a united Crypto community seeking justice and the right to economic freedom.
Community Reaction To Adjournment
Twitter was awash with expressions of disappointment along with the hashtag #CryptoVsRBI. Many were surprised the case was postponed once again when at the last sitting a four-week deadline was given to the government to provide a regulatory framework.
QBITtimes spoke to IndianCryptoGirl, an Indian Cryptocurrency Advocate and one of the vocal supporters of the campaign to set aside the ban. “It’s natural for everyone in the community to be disappointed. There had been month-long campaigns, appeals and discussions leading up to this date,” she said.
She further stated that people had high expectations and she even ran a poll with her Indian crypto community on Twitter, and the majority were hoping for positive crypto regulations on March 29th. It was also her opinion that when a case lasts for mere seconds and is adjourned again, it was natural for them to be discouraged.
But Prashanth Swaminathan, Founder and CEO at XDAT maintains he saw it coming. He stated:
Not very surprising given impending elections and I was expecting the status quo. I was hoping for some insight into their thinking, and timeframes but it may come out later. Next hearing expected on 11 July.
When asked if the court decision has any negative impact on the market, he explained not on the global level. “On the global market, no. Locally it is already a very bad market with low volumes, so it will stay this way,” he remarked.