Wed, December 11, 2024

India’s Supreme Court and Crypto-Related Companies

cryptocurrency industry in India

The Supreme Court of India decided to postpone the full hearing of the case that will have a huge impact on the local community. The Internet & Mobile Association of India (IAMAI) filed a lawsuit against the decision made by the Reserve Bank of India (RBI). As a reminder, in April 2018 country’s central bank implemented a ban. Based on this decision, banks were no longer able to work with crypto businesses. Consequently, Indian crypto exchanges and other crypto-related companies faced a moratorium on banking services following the RBI’s decision.

The Internet & Mobile Association of India is a not-for-profit organization. The purpose of IAMAI is to raise awareness regarding online and mobile value-added services. Also, it helps investors as well as consumers by helping to raise their concerns and opinions.

The court has to decide whether this ban is constitutional or not. According to the co-founder of the Indian crypto regulatory news and analysis platform Crypto Kanoon, by postponing the hearing court made a correct decision.

He stated that the court decided to delay the full-fledged hearing to listen to both sides. They realized it would time to examine the arguments presented by both parties.

This decision is a positive sign as it shows that the court realized the importance of this case to the future of crypto-related businesses in India.

Crypto market in IndiaCrypto companies and banks

The crypto climate in India is far from ideal. For example, prominent local exchanges such as WazirX had to transform its business model into a P2P platform. It made this decision to avoid in-house crypto-fiat conversion.

Another crypto exchange Coindelta does not exist anymore as an operating climate had a negative impact on the company.

Hopefully, the Indian government decided to delay the introduction of the bill that could have a devastating effect on the company. Parliament did not consider the draft bill regarding the cryptocurrency ban during the 2019 winter session.

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