India’s Central Bank States Case to Supreme Court in an Attempt to Ban Cryptocurrency
The Central Bank of India has told the Country’s supreme court on Friday that allowing dealings in Cryptocurrency like Ethereum, Bitcoin and Litecoin will be responsible of illicit transactions and illegal activities. Other petitions against various cryptocurrencies have also been made to take massively huge leaps in an emergency attempt to stop the sales and purchases of cryptocurrency altogether.
RBI Makes Their Argument
The Reserve Bank of India or RBI is the country’s central bank and has finally appeared in front of the supreme court this Friday to implement defenses against cryptocurrencies like Bitcoin and Ethereum. The RBI has implemented a circular, occurring earlier this year (April 6th, 2018) to ban any financial institution they’re in control of, from giving members any services related to cryptocurrency tokens, coins or platforms of any type.
The Economic Times of India took statements from the central bank regarding dealings involving cryptocurrencies such as Bitcoin. Making any such involvement with crypto-token-related dealings illegal transactions, incurring lawful punishment – thereby creating a circular prohibiting the use of any digital currency.
The reason for the crypto-ban is due to the stateless nature of cryptocurrency, which operates independently of any government or financial institutions control, such as the central bank. Making it effectively immune to any regulations, interference or disruption by said institutions, as noted by the news outlet.
The Financial Express has further elaborated on the potential of the central bank’s belief that cryptocurrencies like Bitcoin must be regulated to keep illicit transactions to a minimum or they will have a negative impact on the flow of money in the country, while also leading to illegal activities. Senior consel Shyam Divan, representing the RBI, reiterated that the central bank holds the stance, but other departments may have different opinions.
Some petitions challenged the use of virtual currencies and alleged that they posed grave dangers to the traditional economy and they also sought framing of guidelines to regulate them … They also sought a direction for the Centre to take emergency steps to restrain the sale and purchase of illegal cryptocurrencies.
The Petitions Are Heard
The Hindus appointed petition was filed by a father and son pair, Siddharth Dalmia and Vijay Pal Dalmia. Mr. Dalmia, while stating his case, is seeking to move in a direction to the center to take steps for restraining the buying and selling of cryptocurrencies like Bitcoin and Ethereum, which are being traded for black market activities like terrorism and insurgency, according to sources.
The supreme court of India has already listened to the pair’s original petition last November in 2017, then issuing notices to several departments within the countries government, including the RBI. The central bank final responded that it warned citizens against the usage and risks that are associated with cryptocurrency. But, the Dalmia were not thrilled with the reply from the RBI and proposed a new petition, pointing the lack of action taken by the central bank.
During the Friday hearing, the supreme court gave the government till September 11th to respond to the petitions.