The Supreme Court of India has declined an interim injunction against the circular of Reserve Bank of India (RBI) that bans Indian banks from dealing with companies engaged in cryptocurrency transactions. The circular in this regard was rolled out by RBI and was posted on May 11 by Crypto Kanoon on Twitter, confirming the stand of Supreme Court which supported RBI in its ruling.
Crypto Kanoon is a team of lawyers engaged in spreading legal awareness about cryptocurrency and conducting a crypto regulatory analysis. As per reports, around eleven representatives engaged in different types of crypto-related businesses had sought an interim injunction (on the RBI’s decision to block the companies engaged in crypto transactions) from the Supreme Court. However, the case is still pending and the next hearing will take place on May 17.
Crypto-Experts Criticize Supreme Court’s Decision
The crypto industry in the country is in a tight spot. However, experts in the field of crypto trading have already started showing their disapproval of the action taken by the Supreme Court. The Bitcoin (BTC) and fintech expert, Tim Draper said that the decision of RBI could lead to massive brain drain in the country in the future. Draper believes that majority of entrepreneurs in India look forward to use the emerging cryptos and Blockchain technology in traditional businesses. Hence, to survive and succeed they will either have to stop their business or will have to take it to other countries offering better business conditions and to countries which are more accommodating to crypto technology.
According to Draper, he supports the steps taken by the Prime Minister Narendra Modi to tackle corruption. However, he believes that denial of cryptos in the banking transactions is a huge mistake as it will restrict the growth of the overall businesses in the country.
Chile’s Stand On Cryptocurrency Transactions
Not only India, but many other countries are apprehensive about legalizing the use of cryptocurrency in regular transactions. Last month, a group of cryptocurrency exchanges challenged the decision of Chile government ordering the country’s banks to close crypto accounts. According to the leading cryptocurrency exchanges Buda, Orionx, and CryptoMarket (CryptMKT) of the country this ban on the crypto transactions is affecting the crypto industry badly. Buda’s appeal was heard by the anti-monopoly court that ordered re-opening of the exchange’s two accounts in two major banks of Chile.