Supreme Court of India Strikes Out Injunction Against RBI Crypto Ban

Osato Avan-Nomayo · May 13, 2018 · 5:00 am

The Indian Supreme Court has struck out an interim injunction against the crypto ban of the Reserve Bank of India (RBI). The RBI banned banks and other financial institutions from facilitating cryptocurrency trades in the country. In response, a coalition of petitioners, comprised of four crypto exchange platforms and other startups, have gone to court, challenging the RBI’s directive.

Legal Battle Is Far from Over

The decision by the Supreme Court is the not the end of the matter as the case will be heard on May 17th. According to Crypto Kanoon, the court’s only decision was to decline the interim injunction request. Crypto Kanoon is an Indian legal platform that focuses on the cryptocurrency market.

Interim injunctions are preliminary injunctions compelling a party to the case to refrain from or to carry out specific acts. In this case, the injunction was to ensure a reversal of the RBI’s directive pending the outcome of the case. With the rejection by the apex court, the RBI directive remains in place within the country.

Supreme Court declined to grant interim injunction against RBI banking restriction. Fixed the matter for hearing on 17th May. #bitcoin #RBI https://t.co/bDpQ73cAC9

— Crypto Kanoon (@cryptokanoon) May 11, 2018

The RBI Ban

In April, the RBI, India’s central bank, banned banks and other regulated financial organizations from dealing in cryptocurrency transactions. The bank maintained that the decision was in the interest of investors, citing the fact that cryptocurrencies were a haven for fraudulent activities. According to the bank, the enormity of the risks inherent in the market made it incumbent on them to take action.

Numerous responders to the ban expressed their disagreement with the RBI’s position. Some believe that the move jeopardizes the growth and development of the country’s cryptocurrency market. Others point to the vague language of the ban, challenging its constitutionality.

In a related development, the RBI has responded to the court summons, issuing statements concerning the case. The apex bank says that cryptocurrencies like bitcoin do not qualify as currency according to Indian law. The bank also stated that the Supreme Court has no jurisdiction over economic policy issues.

Wait is over! RBI replies to Crypto Petitions in Supreme Court of India. Retweet if you like. #bitcoin #RBI #ckupdatehttps://t.co/wbDyTy0rsK

— Crypto Kanoon (@cryptokanoon) May 12, 2018

Anti-Crypto Indian Government

Before the ban, the RBI issued three separate press releases cautioning against cryptocurrency investments. The country’s government is also hostile to cryptocurrencies. Despite this hostility, there are reports that the RBI wants to create a national cryptocurrency for India.

Do the petitioners stand a good chance of getting the RBI ban reversed? Let us know in the comments below.

Image courtesy of Twitter/@cryptokanoon, the Reserve Bank of India, and Bitcoinist archives.

bitcoin banindiaRBIReserve Bank of India Show comments

Published at Sun, 13 May 2018 09:00:54 +0000

Altcoin News

September 4, 2017

Scandinavia Leads Europe With Latest Bitcoin Exchange Traded Note Launch

More and more crypto-backed, financial products have been hitting the market, though most of them are not yet accessible via a public exchange.

In the U.S., investors are still waiting on a bitcoin exchange traded fund (ETF) to be approved by the SEC. But, in Europe, investors already have a bitcoin-backed, exchange-traded product available via a public exchange such as the NASDAQ OMX.

In May of 2015, Sweden’s XBT Provider AB announced the authorization of bitcoin Tracker One, the first bitcoin-based security available on a regulated exchange. In October of the same year, it launched Euro-denominated bitcoin-based security, bitcoin Tracker EUR, available through Nasdaq Nordic.

Last week, Danish investors were given access to these ETNs, both bitcoin Tracker One and bitcoin Tracker EUR, via Copenhagen-based Saxo Bank. Similarly, the U.K.’s largest online trading platform, Hargreaves Lansdown, also gave investors access to Bitcoin ETNs this year.

XBT Provider is the issuer of the two Exchange Traded Notes (COINXBE & COINXBT), backed by bitcoin on Nasdaq OMX in Stockholm. Functionally, this means that XBT Provider issues certificates which track the price of bitcoin for delivery to investors who purchase the certificates on NASDAQ OMX. In June 2016, XBT Provider was acquired by asset management firm Global Advisors (Jersey).

XBT Provider is then responsible for ensuring that these certificates accurately mirror (with minimal tracking error) the price movement of the BTC/SEK and BTC/EUR exchange rate by purchasing bitcoin and storing it.

The notes offer investors a familiar route to gain exposure to the price movements of bitcoin without having to purchase or secure the bitcoin themselves.

In an interview with bitcoin Magazine, Ryan Radloff, head of investor relations at XBT provider, discussed their bitcoin ETN gave a look ahead at what may be in store for the future.

What is an exchange traded note?

Exchange Traded Notes are debt backed securities which offer investors exposure to the change in value of the underlying currency. In the case of XBT Provider, the strategy is to track the price movement of the BTC/SEK and BTC/EUR exchange rate. ETNs are usually listed on public exchanges and thus available for purchase via any broker with access to the listing exchange, in our case, NASDAQ OMX.

Why purchase a bitcoin ETN over regular bitcoin?

There are three major reasons to consider a bitcoin ETN over physical bitcoin.

1) Security – When you invest in bitcoin via an ETN, you are not responsible for ensuring the security of the bitcoin.

2) Speed and Convenience: The route to purchasing an ETN is via a familiar broker or brokerage platform and the ETN is listed on a trusted exchange. No new accounts are needed, no new verification steps required. So this means the ETN is often the fastest way to purchase exposure to bitcoin, presuming you do not yet have an account with a crypto-currency exchange.

3) Potential Tax Advantages – In the UK for instance, the bitcoin ETN is uniquely eligible for inclusion in a tax-advantaged SIPP account thus this type of investment in bitcoin may experience a more efficient tax treatment than simply purchasing bitcoin outright.

Is the product limited to a certain type of investor?

The access to the product is governed by your stock broker. First your broker needs to be able to offer access to NASDAQ OMX. Second, your broker needs to authorize you for trading such an instrument. Currently, this product is not available for offer to U.S. investors.

How has XBT Provider performed since launching?

Price is directly correlated with the movement in price of the bitcoin. Since the price of bitcoin was in the $200s when we launched and is currently over $4800, performance has been exceptional.

Any interested investor can find more information at XBTProvider.com or can contact their broker directly to find out whether they have access to the product. As with any investment decision, investors should perform their own due diligence and understand the risks associated with this (young) asset class prior to investing.

The post Scandinavia Leads Europe With Latest Bitcoin Exchange Traded Note Launch appeared first on Bitcoin Magazine.