Decided on April 5, 2018, the ban on trade in cryptocurrencies wanted by the Reserve Bank of India (RBI) was to occur in 3 months, that is to say, Thursday, July 5 precisely. And, despite the fact that the Indian Central Bank does not even know why it has issued this ban, the Supreme Court has not suspended the application of this ban.

Application for suspension of the ban: refusal of the Indian Supreme Court

As FinanceMagnates recalls, at the time of the ban, nearly 5 million Indians made daily transactions equivalent to tens of millions of dollars in cryptocurrencies, via the 12 exchanges that existed in the country.

The RBI has therefore been brought to justice because many complaints have been made to denounce its arbitrary and discriminatory decision.

The hearing that was originally scheduled for July 20 was partially advanced to Tuesday, July 3, at the request of the Internet and Mobile Association of India, to extend by one month the time left to the exchanges and banks providing them to comply with the circular of April 5. That would have given the time to arrive at the main hearing on July 20, without going through the implementation of the ban.

But this request for suspension was unfortunately rejected, the circular prohibiting banks to provide accounts cryptos exchange platforms will be applied from Thursday, July 5.

The cryptos camp counterattack is not over

Representing one of the Indian cryptocurrency exchanges (Kali Digital Eco-Systems), the lawyer Rashmi Deshpande concedes this setback and declares:

"It's a win for the RBI and a blow for cryptocurrency exchanges and traders. (...) Now, if the ban continues, the banking route for the exchanges and their users will be completely stifled. "

But despite this failure, Indian trade remains confident, especially after positive statements from the central Indian government. Indeed, Subash Chandra Garg, the secretary of the Economic Affairs Department of India, confirmed that the central authority was finalizing regulations for the cryptocurrency sector.

As reported by CCN, Subash Chandra Garg said:

"We are close to developing a model [of crypto regulation] that we believe is in the best interest of the country. We have prepared a project that we intend to discuss with committee members during the first week of July. "

In addition, two Indian exchanges have already announced that they will launch new services to circumvent the ban by not using the banks: the exchange platforms WazirX and Koinex have each announced a peer-to-peer transfer service, which will take office from July 5 (date of application of the circular of the RBI).

There will also be the next hearing in the Indian Supreme Court on July 20, to try to counter once and for all the ban of the Indian Central Bank.

Whatever happens, and of course we hope in the long term the cancellation of this ban (based on nothing of the RBI's own admission), the important point that we wish to point out to our readers is that there has a small, but real, risk of massive sales from Indian investors, before this fateful date of July 5. It will be necessary to closely monitor the prices of cryptocurrencies, to see if this bad news will have a significant negative impact.

 Sources : FinanceMagnates ; AMBcrypto || Images from Shutterstock