The Supreme Court of India[1] declined to grant an interim injunction against the Reserve Bank of India[2] (RBI) circular banning banking services for companies dealing in cryptocurrency, according to a Twitter[3] post by Crypto Kanoon May 11. Crypto Kanoon is a team of Indian lawyers engaged in crypto regulatory analysis and legal awareness.
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[4][5][6]
— Crypto Kanoon (@cryptokanoon)
11 different representatives from various crypto-related businesses who filed a petition with the Indian Supreme Court sought an interim injunction against the circular. Court documents confirm that the injunction was denied and the case is still pending. The case will be heard again on May 17.
An interim injunction is a provisional measure sought during legal proceedings, before trial, requiring a party either to do a specific act, or to refrain from a specific act. They are intended to prevent unjust circumstances pending trial.
Last month, the RBI ordered regulated banks and payment platforms to “immediately suspend their services” to companies dealing with digital currencies. The RBI’s statement was met with public outcry[8] as the bank’s move directly affected the interest of a great number of cryptocurrency[9] companies and startups. The circular reads[10]:
“… it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs [virtual currencies] or provide services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral,
