India and cryptocurrencies: central bank strikes back

Following the cancellation of his anti-crypto circular by the Supreme Court, the Reserve Bank of India plans to file a request for review. For the financial institution, cryptocurrencies can put in peril the banking system.

At the start of the week, the Supreme Court indian canceled the circular of Bank of India (RBI) which prohibited local banks from dealing with crypto-startups. Specialized companies, such as stock exchanges, can now access banking services again.

However, the Reserve Bank of India does not want to stop there, reports the EconomicTimes. According to local media citing people close to the case, the RBI indeed plans to file a request for review. It is an extraordinary remedy which allows requests, in very limited cases, to reconsider a final decision.

Since 2018 and so far, its circular had largely hindered the trade in bitcoins and other digital coins in Asia’s third largest economy. Now the central bank is concerned that its cancellation would jeopardize the Indian banking system.

Several crypto-startups and exchanges, which had relocated their activity, notably to Singapore, are now planning to return to India, reports the daily.