Crypto Frontline

Cryptocurrencies are having a hard time in India since April 2018. And that happens because the Reserve Bank of India (which is India’s central bank) had directed banks to wind down all crypto-related accounts by the beginning of July. Digital assets had been treated with reservation in India, primarily due to their lack of regulation and lack of intrinsic value, as public officials had been stating over time. Even though this issue did not have a strong impact on the price of cryptocurrencies, the outcome will be crucial for the Indian market.

The Supreme Court to decide on the issue

July 20^th, 2018 is the day when the Indian Supreme Court will resume hearings in the case opened by exchange operators against the central bank. Even though the verdict will take time to appear, the decision will be highly expected since it will clear the government stance on cryptocurrencies and digital assets.

In a period when the ICO market continues to impress, Indian companies cannot get involved in this industry thanks to a decision taken by the RBI. India is now among a series of countries (China and Nepal are also some examples) that had banned ICOs, cryptocurrencies or other related activities. The situation is strange since most of the other countries have communist leadership in play, which is not the case for India.

Because of the measure was taken by public authorities, people had been forced to move their activity outside of the country. We’ve seen that in a recent material, where we have discussed an Indian cryptocurrency fund opening in the United States.

Exchanges did not put their guard down and had initiated procedures against the Reserve Bank of India (RBI), and are relying on two articles from the Constitution: Article 19(1) (g), which allows any Indian citizen to carry on any occupation, trade, or business; and article 14, that prohibits discrimination and mandates equality under the law for all people.

Thus far, the Supreme Court refused to give interim relief to exchange platforms, keeping the uncertainty alive until the final hearings.

In the meantime, cryptocurrencies managed to recover some lost ground, with Bitcoin leading the way. The most popular cryptocurrency had gained more than 20% since the beginning of the week and is located at 7,453 US dollars per piece at the time of writing. We have managed to anticipate the move in our last weekly crypto analysis, so make sure to check them on a regular basis since we provide valuable insights and reliable information.