India’s Supreme Court Moves Forward With Cryptocurrency Ban, Banking Services Denied To Crypto Companies

  • The Supreme Court of India now supports the reserve bank’s decision to terminate banking relationships with local cryptocurrency exchanges.
  • Rashmi Deshpande, Indian lawyer representing a local exchange, says “this is a win for the [reserve bank] and a big blow” to crypto-related businesses.

The Supreme Court of India recently announced that it will not be providing any type of relief to cryptocurrency exchanges from the restrictions placed on them by the Reserve Bank of India (RBI). On April 5th, the RBI had ordered all local financial institutions to bring their banking relationships with crypto related businesses to an end within a 3-month time period. The reserve bank’s official ban on cryptocurrency exchanges will reportedly be effective on July 6th, 2018.

In an attempt to fight the central bank’s crypto ban, several digital currency exchanges took the matter to India’s Supreme Court in April. The court then scheduled the next hearing date for July 20th, which is exactly two weeks after the crypto ban was expected to become effective. However, the Internet and Mobile Association of India (IAMAI), which includes local cryptocurrency exchanges among its members, asked the court for an additional hearing on an earlier date, which was conducted on July 3rd.

“A Big Blow” To Crypto Firms

Rashmi Deshpande, a lawyer representing Kali Digital Eco-Systems, a crypto exchange set to launch some time this year, stated, “This a win for the RBI and a big blow to virtual currency exchanges and traders. In our earlier request to the RBI as well, we had asked it to extend the deadline by a month after the July 20 hearing.” Deshpande added that since it has now been decided to move forward with the ban, crypto traders and businesses will not be able to access the nation’s banking services.

In a previous May 17th hearing conducted by the apex court, the exchanges had been requested to file their issues and complaints against the RBI. The companies operating the exchanges had also notably been in close communication with the central bank during the last few days of May and early June. Nischal Shetty, the CEO of local crypto exchange WazirX, noted that his company had tried to explain to the RBI how blockchain technology works by submitting “a detailed presentation that could have given [the bank] a clearer picture on what is blockchain, [and] how the exchanges work.” However, Shetty says he never got any response from the RBI.

Cryptocurrency Regulations Draft Almost Finalized

Moreover, during the July 3rd hearing, the supreme court ordered the reserve bank to address the issues raised by the crypto companies within a week from the end of the hearing. At present, the Indian government is reportedly almost ready to submit its first draft on proposed cryptocurrency regulations.

Subhash Chandra Garg, India’s Economic Affairs Secretary, said that the drafted regulations specify “which parts of [these crypto] businesses should be banned and what should be preserved.” He also stated that discussions pertaining to the drafted regulations would take place and be brought to an end by “the first fortnight of July.”

Binance Is Launching a Beta Version of Its New Debit Card

Siamak Masnavi

On Thursday (March 26), crypto exchange Binance introduced its own crypto-backed debit card.

As you might already know, last April, Coinbase announced "Coinbase Card", a crypto-backed debit card.

Well, now, Binance seems to have decided that there is sufficiently high interest from its users to make it worthwhile to launch its own crypto-backed Visa debit card that will be called "Binance Card".

What is the motivation for such a debit card?

Binance says that it is trying to make it easier to pay for goods/services with crypto (you already own) and thereby "take crypto adoption one step further."

Using a crypto-backed debit card that is tied to your Binance.com account means that you don't need to go through the inconvenient, slow, and potentially expensive process of selling your crypto and then waiting for the proceeds from the sale to reach your bank account.

Binance Card essentially behaves like a regular prepaid debit card except that it is linked to your Binance.com account rather than a bank account.

It can be topped up with Bitcoin (BTC) or Binance Coin (BNB) that you hold in your Binance.com account via the Binance Card mobile app. This balance will then be used for any crypto payments made through the card. 

Binance Card will be available as a "virtual card" in Malaysia starting in April, and soon it will also be available as a physical card. As for other countries, Vietnam will be the next country in which Binance Card will be launched, and the rest of the world will follow thereafter.

If you are interested in being notified when this card becomes available in your country, you should register your interest by giving Binance your email address at the Binance Card website

The cost of the card is $15 (this is a one-time fee).

To use/control the card, you will need to use the Binance Card app; this will allow you to "manage your funds, card security, and spending with only a few taps."

Over on Twitter, this is what Binance Co-Founder and CEO Changpeng Zhao (aka "CZ") had to say about today's announcement:

 

Featured Image Courtesy of Binance