Final legal clash between cryptocurrency exchanges, India’s central bank begins

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September 11, 2018 by
Final legal clash between cryptocurrency exchanges, India’s central bank begins

The long-awaited day for India’s top most court to determine the future of cryptocurrency exchanges in the country has arrived. The result of the final hearing arranged on Tuesday concerning the fate of cryptocurrency trading systems will place an end to raising unpredictability experienced by these exchanges.

Beginning of the war
The clash between the Reserve Bank of India (RBI) and crypto exchanges started when the reserve bank limited financial institutions from offering services to business handling cryptocurrencies. According to its directive, banks and banks were called for to end all professional relationships with such exchanges in India.

Complying with the move, local exchanges merged and also come close to the nation’s top court to look for remedy for such strict laws. However, the High Court of India did not grant a stay on the RBI directive.

So why did RBI take on such a severe position? For RBI, the security of its clients and financiers precedes. It believes that financiers are highly susceptible to cryptocurrency scams when managing cryptocurrency business and exchanges

The stand taken by the central bank has actually lined up with the Indian federal government, which has likened cryptocurrency frauds to ponzi plans. Problems regarding crypto-based organisations obtaining involved in unlawful tasks such as money laundering and also fear financing have likewise been increased.

Case made by local crypto exchanges.
However, regional crypto exchanges have vehemently opposed RBI’s relocation by describing Post 19 (1) (g) of the Indian constitution. The post states that all Indian residents can conduct any kind of business, trading task and line of work.

The exchanges agree to accept policies as well as scrutiny from regulatory bodies. However, they oppose a total restriction on their service since rip-offs could occur at any place as well as with any type of occupation which deals with huge amounts of cash and investments.

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