While the world is progressing ahead with cryptocurrencies in terms of regulations, products, and adoption, Indian regulatory bodies and the apex court have just been pushing the hearing date for the case related to Indian Central Bank’s Fiat ban for crypto businesses of making the business environment vulnerable for Indian crypto businesses.
Crypto businesses taking a hit due to the inconclusive regulatory environment
According to the recent update put forward by a Twitter user named “Crypto Kanoon”, who has been closely following the update that flies out of Apex Court in India with respect to the long-pending Indian Crypto Community vs Reserve bank of India (India’s Central Bank), the court hearing date has now been shifted to Q1 FY 19 to be precise on January 15,2019.
Different people speculated the conclusion date differently but those who expected it in 2019 were right!
Next date: 15.01.2019 pic.twitter.com/qBEfCfnd5Y
— Crypto Kanoon (@cryptokanoon) November 22, 2018
This means the wait for crypto businesses in India has just got longer by a month. The Indian crypto industry is already struggling without the Fiat support and the delays are just making things tough for them to survive. There have already been a couple of calamities already including one of the prominent exchanges in the country Zebpay, which couldn’t manage the falling business dye to the regulatory hurdle.
A couple of days back, Quartz India, a digital news agency, had reported that The Indian government is actively preparing a draft bill on crypto regulation, which is expected to see light this December, but now with the court hearing moved to January, the December deadline may just get extended.
Complying to previous Apex Court’ s order issued on Oct. 25 asking the government to outline its policy and specify a timeline to finalize the draft regulations., The Government of India had filed a counter-affidavit on Nov. 19, in the Supreme Court of India, to clear its stance on cryptocurrencies and the related businesses.
The documents procured by Quartz India in relation to this case stated
“…several informal meetings have been held to develop a draft law to control/ban the use of crypto-currencies in India, promote the use of blockchain technologies and also to examine (the) feasibility of official digital currencies in India.”
Indian crypto business has been remodeling the businesses to comply with the fact ban for crypto businesses that got effective from July. Not everyone has been successful with their remodeling and even the once that have bound various options to bypass this ban have struggled to generate enough interest which there prior to the ban.
Stories aside, the fate of cryptocurrencies now hangs on the Apex Court decision. Considering the market and population size, India could definitely be a game changer in terms of increasing the cryptocurrency adoption.
Will the Apex court decide in favour of crypto businesses or will the Central bank have the last laugh here? Do let us know your views on the same
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.