Cryptocurrency Exchanges approach SC on RBIs BAN

Cryptocurrency exchanges are set to approach the Supreme Court to seek direction on whether the reserve bank of India can direct banks to stop dealing with them despite an early ruling by the Apex court quashing RBIs order to ban cryptocurrencies. This came after the RBI through an informal Diktat asked Bank to stop dealing with cryptocurrency exchanges in the last month or so some of the banks have stopped providing services to the exchanges which has led to a major disruption the exchanges were somehow managing their businesses through payment processing company such as PTM or P2P however PTM too stop providing services to the exchanges from last week The exchanges Are now coming together to seek clarity around the payment choke.

Insiders say that there is a growing discomfort as bank have restricted the services to facilitate the transactions even after last year Supreme Court verdict where it quashed RBI order to ban crypto transactions the bank are not lending their services to prepare exchanges and crypto trader’s keeping this issue in mind the impact on business activity.  Most of the major crypto exchanges are looking to knock the door of supreme court again to get a clear-cut directive regarding banking services so that uninterrupted services Can be provided to the traders

In April 2018 the RBI had issued a circular and asked all the financial institutions banks and NBFCs to stop providing services to crypto exchanges following this cryptocurrency exchanges had drag the RBI to the Supreme Court. Last year the Supreme Court quashed RBI circular paving way for crypto exchanges to restart their operations. Most bank queued up to offer services to crypto exchanges after supreme court ordered till recently when the RBI again told Bank to stop doing so I am aware of the plan of exchanges as part of our association and IAMAI that we could like Approach the supreme court to get this sorted out. S-ET

 

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