The Reserve Bank of India (RBI), the country’s central bank, has decided to appeal against the recent decision of the Supreme Court squashing the banking ban on crypto companies.
Reported by local news outlet Economic Times, the decision was not officially revealed by the central bank yet.
This came as the decision of the apex court came on Wednesday in a landmark judgment after a delay of several months in hearing the arguments.
If the RBI wants to appeal to the court’s ruling, it has to approach a higher judge bench, but the decision to accept its appeal solely depends on the court.
The central bank is reportedly concerned about the negative impact the ruling will make on the country’s banking system.
Still a hostile environment for crypto?
The ruling was made against a circular issued by the Indian central bank in April 2019, barring all the banks under its purview to cease offering fiat-based services to crypto exchanges and firms in the industry with an ultimatum of 3 months.
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This made a massive dent in the Indian crypto market with slumping volumes, forcing many exchanges to move their bases abroad and even shutter their services permanently.
Many, however, circumvented the restricted banking access by introducing peer-to-peer trading services to keep trading in the market afloat.
The reversal of RBI decision by the Supreme Court was followed by the industry players to restore their fiat deposit in hours.
“The revoking of the banking ban by the Supreme Court is going to open new opportunities for India in terms of investments, economic growth, financial inclusion, and market maturation,” Sumit Gupta, co-founder and CEO of CoinDCX, an Indian crypto exchange, told Finance Magnates.
“We have always seen crypto as a potential to unlock India’s dream of becoming a $5 trillion economy and remain committed to carrying out the hard work which is necessary to make this dream come true.”