The decision of India’s Reserve Bank to ban cryptocurrencies transactions can be revised in the near term.
According to the news reports, the Reserve Bank of India banned crypto operations in early April, but for now, the government has created a special government panel to study to the prohibition of digital coins in India. Specifically, the authorities reportedly may greenlight cryptocurrency use but setting certain terms and conditions.
With the April ban, the companies in this sector faced problems and losses as they became unable to use their bank accounts for crypto trading. As a result, many of them have lodged a petition to the Supreme Court, and the hearing is slated for late July.
One of the victims, India-based exchange WazirX stated that the regulator’s ban had a massive effect, while they had not studied the matter and this decision was unlikely to be a reasonable solution.
“Lack of proper stakeholder consultation and absence of reasonable grounds to restrict any business are the primary provisions under which the RBI notice has been challenged in the SC,” the news report reads.
At the same time, the Reserve Bank of India still has not provided any well-grounded reasons for such strict move regarding cryptocurrency segment.