The cryptocurrency exchanges, adopters and advocacy groups pace different high courts (HC) around the country in filing petitions against the RBI’s circular from April – effectively barring banks from processing all cryptocurrency purchases – in a hearing on Thursday the Supreme Court has ordered that HCs will no longer let any petitions to be filed, according to the report by the local news resource Crypto Kanoon. The Supreme Court has also denied to put any stay, or a temporary delay, on the central bank’s circular.
The Delhi High Court was given the petitions against the RBI circular by the range of crypto firms including the exchange operator Kali Digital and Flintstone Tech, a crypto trading and storage platform. They claimed that RBI’s new measures were “arbitrary, unfair and unconstitutional”. Earlier this month, 4 more Indian exchanges challenged the RBI circular and its constitutional validity with a writ petition. During Thursday’s events` development, the Supreme Court has appointed the next proceeding on the matter on July 20 when it will hear related petitions filed at the court.
After numerous warnings against cryptocurrency-related investments over the years, the Reserve Bank of India published a sweeping policy banning all regulated financial institutions including banks from providing services to firms “dealing with or settling [cryptocurrencies]” on April 5. The RBI also mandated banks to settle and block their services and relationships with customers dealing with cryptocurrencies in a 3-month period that will run out on June 6.