Cryptocurrency exchanges may approach SC on RBI directive 
New Delhi: Cryptocurrency exchanges may transfer the Supreme Court to hunt course on whether or not the Reserve Bank of India (RBI) can direct banks to cease coping with them, ET reported. This comes after an ‘casual’ diktat from RBI, in which it requested banks to cease coping with crypto exchanges.
In the final month or so, among the banks have stopped offering providers to the exchanges, which has led to a serious disruption.
Banks have lately develop into cautious about cryptocurrency-related transactions amid regulatory uncertainty.
Earlier this month, exchanges have communicated to the federal government that market regulator Securities and Exchange Board of India (Sebi) is extra suited to manage the area than the Reserve Bank of India (RBI).
Exchanges reasoned that cryptocurrency property, similar to Bitcoin and Ethereum, are nearer to commodities than currencies, Economic Times reported. The exchanges additionally proposed a brand new entity to manage cryptocurrencies.
In this regard, these exchanges at the moment are coming collectively to hunt readability across the fee choke.
“Even after final 12 months’s Supreme Court verdict the place it quashed the RBI order to ban crypto transactions, the banks should not lending their providers to crypto exchanges and crypto merchants,” mentioned Ashish Mehta, co-founder DigitX, a cryptocurrency alternate informed monetary every day Economic Times. “Keeping this situation in thoughts and the influence on enterprise exercise, many of the main crypto exchanges want to knock the door of the Supreme Court once more to get a clear-cut directive concerning banking providers in order that uninterrupted transaction providers might be supplied to the merchants/traders.”
However, in 2020, the highest court docket quashed RBI’s round, paving approach for cryptocurrency exchanges to restart their operations. Most banks queued as much as supply providers to cryptocurrency exchanges after the Supreme Court order. Until a current directive the place the Reserve financial institution of India once more requested the banks to cease doing so.
According to the ET report, the exchanges might file a petition in this regard anytime this week or subsequent week.
