India is currently a hotbed when it comes to crypto regulations. Banks are currently banned from transacting with cryptocurrency exchanges. And so far, its Supreme Court refused to lift the ban.
So what’s next for India? Does it mean that investors should give up their cryptos and cut losses if possible?
The good news is that July 20, the supreme court resumes the hearings in the case pertaining to the central bank’s approach that crippled the crypto industry’s business. Though everyone is expecting that the verdict will take a long time, this will help provide regulatory clarity towards the industry. It is no secret at this point that the Reserve Bank of India has some reservations on cryptocurrencies.
It started in April when RBI directed the banks to let go of crypto-related accounts. The deadline was by the first week of July.
So what are the legal grounds for cryptocurrency exchanges challenging the decision of the central bank? One, the Indian constitution allows citizens to enjoy the right to carry any trade, business, or occupation. Because of this, it prohibits discrimination and mandates equal protection under the law.
Though the ban still hasn’t been lifted, the industry remains optimistic about the entire situation. According to Rashmi Deshpande who is the associate partner at Khaitan & Co, “Our expectation is that the hearing will be the basis of merit where we get to present the case on why the RBI circular is unconstitutional and should be quashed”.
The case is being heard by chief justice Dipak Misra, justices AM Khanwilkar and DY Chandrachud. In addition to this, the attorney general of India (AGI) will also be present. According to an anonymous lawyer, “The union government is also a party in some of the cases, so that may be one of the reasons for calling AGI”.
Bitcoin Slowly on the Rise
While India is trying to figure out what to do with the industry, Bitcoin has currently recovered this month. In June, Bitcoin was trading below $6,000. But today, Bitcoin is closer to $7,500. However, it is true that it is still quite far from its all-time high last December at almost $20,000.
US SEC has already clarified that Bitcoin along with Ethereum are considered commodities. And this significantly contributed to the current bullish trend on Bitcoin and Ethereum. However, it is true that many other cryptocurrencies such as Ripple are in a grey area.
There are also other countries that are becoming supportive of the industry despite the reality that they are also doing their part to regulate the market. Japan and South Korea are both doing their part in Asia. Japan has released new rules that will be followed by crypto exchanges including a more robust security that will prevent hacking incidences.
Though it is true that there are many concerns regarding the cryptocurrency industry today, even European Parliament thinks that it is a bad idea to ban cryptocurrencies completely. You even have the likes of Switzerland that is planning to regain the crypto businesses into their territory.