The supreme court in India has challenged the central bank’s ban of commercial banks servicing cryptocurrency business and has created a timetable for the group to justify their actions.
Supreme Court Challenges RBI
Since 2018, the Reserve Bank of India (RBI) has barred banks from working with cryptocurrency exchanges and other crypto-based businesses. According to the most recent hearing on Aug 21 involving the RBI’s stance towards cryptocurrency operations, the Supreme Court ruled that the central bank had not sufficiently justified the ban.
Supreme Court Justice Rohinton Fali Nariman shared severe criticism for the RBI’s handling of crypto business in the country, and gave the central bank just two weeks to come up with a justification for the continued ban.
Court orders:— Crypto Kanoon (@cryptokanoon) August 21, 2019
After hearing arguments we are of the view that detailed representations by exchanges purusant to this court's order 17.05.2018, have not been answered point by point, therefore RBI to reply them with in 2 weeks. SG to furnish various docs within 1 week.
According to the updates posted for the session, the court officials explained that crypto exchanges are looking for a reconsideration of the central bank’s stance and are willing to work with anti-money laundering regulations.
Exchanges are not asking to uplift the ban but they are only asking you to reconsider. If you dont give answer to it, I will pass the judgment.— Crypto Kanoon (@cryptokanoon) August 21, 2019
Mr. Sood reads out the suggestions given to RBI by exchanges. That Money laundering Act can be made applicable to exchanges as intermediaries making them responsible for reporting directly. or enjoining on banks to make additional requirements for exchanges.— Crypto Kanoon (@cryptokanoon) August 21, 2019
The hearing comes just a month after an undrafted bill surfaced in July, showing that the Indian government was considering an outright ban on bitcoin and cryptocurrency. In response to the alleged ban, billionaire investor Tim Draper called the government “pathetic and corrupt,” leading to a firestorm of Twitter debate over how crypto regulation should be handled.