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The Reserve Bank of India is unhappy with the Supreme Court’s ruling in favor of crypto services and is looking to file for a review petition.
Most times, authorities in a country are somewhat in sync about what they think the state of cryptocurrency should be. There are many countries that are strictly against crypto. In some other places, the fight is against decentralized digital assets, spurring the development of their own national digital currencies. China, for example, is strongly against decentralized crypto and is working hard at creating a digital yuan. In India, however, the case has just become more straightforward. The Reserve Bank of India (RBI) recently lost its case against crypto at the Supreme Court. It is now planning to file a petition review.
Reserve Bank of India to File Petition
According to an Economic Times report, the Reserve Bank of India is unsurprisingly displeased with the Supreme Court’s ruling. Earlier this week, the apex court ruled that the RBI’s crypto banking ban was unconstitutional. This suggests that all of the restrictions earlier placed by the RBI on crypto businesses would be reversed. While the news was celebrated nationwide by crypto supporters, the RBI is still worried.
The report suggests that the Reserve Bank is concerned that support for virtual currencies would be bad for the economy in India. The apex bank believes that allowing digital assets to operate along with the Indian Rupee would be very risky for the country’s banking system. For this reason, the RBI wants a review.
A review is possible but has a very slim chance of making any difference. The constitution in India specifies that a Supreme Court judgment is final and automatically becomes law. These cases also form the background for ruling related proceedings that may come up in the future.
According to law, the RBI must file not later than 30 days of the judgment date.
Reserve Bank of India Is Anti-Crypto
Back in 2018, the Reserve Bank fired at financial institutions including banks, warning them to stay away from cryptocurrencies. It gave the same reasons at the time, about the strength of the country’s financial system and the negative effects digital assets could have on the economy. Not long after, it outrightly banned these banks from rendering services to crypto business.
The effects of the ban were far-reaching as banks immediately closed accounts belonging to some of these crypto businesses. A few exchanges had to shut down completely in India. The ban prompted a petition and lawsuit from the Internet and Mobile Association of India (IAMAI). After some back and forth, the Supreme Court ruled in favor of crypto, much to the RBI’s disappointment.
Effects of the Ruling
The Supreme Court’s ruling is bullish for the crypto sector in India as well as outside the country. Crypto in India will now grow as expected since these assets are now somewhat legal. Also, some of the crypto exchanges that had to abandon the Indian space in 2018 would be looking to return. This will also encourage more crypto businesses.
Outside of the country, the Supreme Court’s ruling could prompt other authorities to be a lot more lenient with crypto.