Supreme Court of India refused of giving any relief to Cryptocurrency investors against the ban of RBI in Cryptocurrency dealing. On April 6 central bank or RBI presented a circular stating that the banks and other financial institutions will not provide any kind of service in relation to virtual currency or Cryptocurrency. Then The Internet and Mobile Association of India (IAMAI), which represents internet firms, had filed a writ petition in the Supreme Court against the RBI move to ban banks and financial institutions from providing services to any individual or business dealing in cryptocurrencies. But the Supreme Court denied the petition.
Basically according to the RBI, the entities which are regulated under RBI have been barred from providing any service, including transfer of receipt of money in accounts relating to purchase or sale of virtual currency. It pushes towards peer to peer exchange. In P2P trade, the buyer and seller can deal with each other directly while the exchange acts as an escrow account that holds the crypto during the transaction to avoid cheating.
This news will have a drastic effect on Cryptocurrency trading platform, Cryptocurrency investment and the prices as well. People may start withdrawing their money because firstly the Cryptocurrency market is not regulated by any government or authority and secondly now the banks will not provide any help or service in dealing. Zebpay, one of the biggest digital crypto-exchanges in India, has already asked its clients to withdraw their funds before the deadline expires. A couple of Cryptocurrency exchanges including BTCXIndia and Ethexindia halted their trading.
This is basically the sad news because everyone was expecting Supreme Court to do a favor to the Cryptocurrency community especially when all the Cryptocurrency regulators across the globe are doing great job in embracing this technology.
Similarly Zimbabwe’s central bank has also banned financial institution from dealing in Cryptocurrency.