According to the Indian “Times” report, the Reserve Bank of India (RBI) will ban all encryption-related account transactions on Thursday, July 5, during the deadline of the Central Bank of India (RBI). The Supreme Court also ruled earlier this week that it would not grant temporary relief to those affected by the imminent ban.
Panjak Jain, who works in the Indian blockchain and encryption community, is an investor and consultant. On July 3, he wrote on Twitter: “This is unfortunate, but the Supreme Court of India refused to comply with @RBI for regulated entities. The restrictions do not allow them to engage in encryption services.” Jain added that “green hope” is the reason why the central bank must give a ban within a week.
In early April, the Reserve Bank of India announced that they would no longer provide services to people or businesses that trade in cryptocurrencies, unlike the general ban on cryptocurrencies.
The Supreme Court of India subsequently dismissed the May ban on the Indian Reserve Bank’s crypto-trade ban – 11 different encryption-related companies filed the ban and added a week later that the Reserve Bank of India’s ban would no longer be Submitted to the High Court. According to reports, the Indian Supreme Court has confirmed the date of the hearing on July 20.
The Times of India writes that Indian citizens will not be able to buy and sell cryptocurrencies on exchanges, but instead need to use peer-to-peer networks. If an Indian citizen wants to convert cryptocurrencies into legal currency, they will need to use market transactions.
In addition, encrypted exchanges and companies will not be able to obtain loans from banks in India.
A direct result of the ban is that the Indian cryptocurrency exchange Zebpay announced on July 4 that it will freeze the deposits of the Indian Rupee before the ban takes effect.
Jason a. Williams, a partner at Morgan Creek Digital Assets, also mentioned on Twitter the Supreme Court’s ban on RBI:
This decision puts India in an extremely unfavourable strategic position in terms of innovation around the blockchain.
India’s ruin of the rupee notes reveals their corruption. They control the people by prohibiting cryptocurrencies.
The encryption market has seen a slight decline today, which can be attributed to news from India. Bitcoin (BTC) fell below $6,500, which was about $6,470 at the time of publication and fell slightly below 3% in 24 hours. The encryption of Ethereum (ETH) is around US$461. According to the release time, the drop within 24 hours is slightly less than 1%.