It is not clear what will happen in the July 15-20 time frame. Several exchanges have already moved to a crypto-to-crypto model doing away with fiat transactions. Earlier in April this year, two of India’s largest cryptocurrency exchanges Zebpay and Koinex introduced crypto-to-crypto trading on their platforms, this way they could continue to operate without banking dependency until there is some clarity on the future fiat-based cryptocurrency trade in India.
Those in the business talk about a rise in peer-to-peer or over the counter (OTC) cash-based trades in cryptocurrencies. “If you look at the numbers, the volume in India has not decreased in India after the RBI circular. The number has decreased on the exchanges but at the same time the volume of peer-to-peer transactions has increased,” says Yadav. Data on this could not be immediately obtained.
What next?
For now, petitioners and their lawyers are hoping for an interim relief from the Supreme Court. If that happens, it will ensure that the RBI circular will be kept in abeyance until a final decision is made.
So far there have been four hearings in the matter. The Supreme Court has directed all pending and future cases regarding the matter towards itself. It has also asked for the attorney general to be present at the next hearing.
Despite the delays, experts say the current crop of cases will make clear the way forward for crypto businesses in India. “Only with clarity, be it regarding legality or regulations, can an ecosystem grow, but that has not been the case in India,” says Joel John, an analyst at UK-based Outlier Ventures’ India team.