Indian Supreme Court To Central Bank: You Have Two Weeks To Explain Bitcoin Ban
India’s top-most court has given the country’s central bank two weeks to justify its decision to ban crypto business in the country.
Hearing of Crypto case has resumed.
Mr. Shyam Divan, Ld. Sr. Advocate started his arguments for RBI.
Most likely the arguments will conclude today.
— Crypto Kanoon (@cryptokanoon) August 21, 2019
On August 21, the Supreme Court of India held a session in an ongoing case pitting the Reserve Bank of India versus crypto based businesses in the country. During the session, the court ruled that RBI had not fully responded to the concerns raised by the crypto based businesses over its actions.
During the hearing the apex court noted that the central bank forwarded the presentation to the government. But what it should have done is provide the exchanges with a detailed, point-by-point response. Judge Rohinton Fali Nariman ordered the RBI to respond to the same presentation in two weeks, shifting the next hearing date to September 25, 2019.
Crypto Kanoon, an India-based cryptocurrency news source, which was reporting the hearing live via Twitter feeds summarized Justice Nariman’s order to RBI:
“Now justice Nariman questions RBI why you have not properly responded to the representation. You just said that we are forwarding to Govt. Angrily says this is not an answer,”
one update on Twitter feed read.
RBI agreed to the two week deadline issued and committed itself to furnish the relevant materials.
The decision came on the third day of an ongoing courtroom battle between RBI and the Internet and Mobile Association of India (IAMAI). The two have been in a lockdown ever since RBI barred banks from dealing with firms associated with cryptocurrencies. The move hurt an otherwise nascent and booming crypto exchange industry, forcing many leading players to either shut down shops or migrate to more crypto-friendly destinations.
IAMAI is questioning the constitutional authority of RBI in imposing the crypto prohibition. The argument was reflected in today’s court session, as the central bank’s legal counsel explained the specific provisions that allow RBI to take necessary actions whenever it believes the country’s monetary system is at risk.
The case comes at a time when the Indian government is mooting a plan to make cryptos illegal for all Indians. Additionally, it is believed that RBI is planning its own version of digital currency.