Why India’s Supreme Court verdict won’t change the fate of cryptocurrencies decisively

#News(General) [ via IoTGroup ]

Headings…
Why India’s Supreme Court verdict won’t change the fate of cryptocurrencies
WHAT HAS HAPPENED?
HOW WOULD BOTH VERDICTS PLAY OUT?
WE COULD SEE SHORT TERM RESPITE..
BUT THERE WOULD STILL BE LONG-TERM VULNERABILITY
CONCLUSION

Auto extracted Text……

The Indian Supreme Court received its first petitions on cryptocurrencies in 2017
India’s blockchain story has been dramatic — rapidly growing startups, a sudden prohibition on the Indian banking system and legal action taken by the industry against the central bank.
After over a year of petitions and hearings between the central bank and industry players, the Indian Supreme Court is to now give its verdict on whether the prohibition of cryptocurrencies will hold or be reversed in the country.
On this date the Indian Central Bank, the Reserve Bank of India (RBI), issued a landmark circular prohibiting all entities regulated by it, in effect the entire Indian banking system, from dealing with virtual currencies.
After exhausting avenues for consultation, an industry body moved the Supreme Court of India against the RBI circular.
The first petitions were filed in 2017 (regarding the nature and treatment of cryptocurrencies) and after the release of the RBI circular, more petitions were filed by industry players against the circular.
On the petitions against the RBI circular, the Supreme Court could uphold the legality of the circular (the prohibition on Indian banks dealing with cryptocurrencies stays and the RBI wins the case) or reject the legality of the circular (the prohibition gets lifted and the industry wins the case).
If the RBI wins the Supreme Court case, this would give a boost to the government position of closing off the economy from cryptocurrency exposure.
The Draft Bill on banning cryptocurrencies, released by the Finance Ministry in 2019, will likely get tabled in Parliament and we can assume it will be passed without much obstruction, since both policy position and the Supreme Court verdict are in alignment.
However, this could still remain only a short-term respite because the verdict against the RBI does not directly impact actions on the policy level.
The verdict of the Supreme Court will, hence, only address the RBI circular

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