The Supreme court of India refused to lift the ban imposed by the Central Bank, which prohibits cryptomeria country to use the services of regulated financial institutions.
Bloomberg, the Indian Supreme court and its chief justice Dipak Misra (Dipak Misra) stated that the prohibition of the Reserve Bank of India (RBI) for the provision of services to businesses related to cryptocurrency, would «remain in force».
This decision supports the ban imposed by the Central Bank of the country in April this year. Then RBI has released
circular prohibiting banks in India to cater to cryptocurrency exchanges or related companies. Banks had three months to leave the market – July 6 the ban should enter into force.
This policy was disregarded by members of the crypto community. In the courts of India were filed five lawsuits, after the Supreme court banned all other judicial agencies to make such motions before the hearing, which will be held July 20. Then it was reported that on this day the Supreme court will
the final decision on this issue.
According to Quartz, a hearing was held on 3 July instead of the 20th, after Internet and Mobile Association of India (IAMAI), which consists of cryptocurrency exchanges, has requested a preliminary hearing.
The representatives of the RBI argued at the hearing that cryptocurrencies, including bitcoin, can not be considered as currency in India as the law of the country requires that coins «were made of metal or existed in a physical form and was released by the government.» The struggle in the Supreme court is not finished yet, because the hearing on 20 July is still scheduled to take place.
In June of this year, lawyers representing a crypto currency exchange, has requested the RBI clarification on the ban in accordance with the national Law on the right to information. According to the responses received, the decision was not the result of any special studies or discussions with the regulatory authority. Central Bank of the country simply could not justify the ban.
In this story the Supreme court of India occupies an ambiguous position. At the end of April he published
the notice, which claimed that the decision of the RBI banning the cryptocurrency business violates the Constitution of India. However, three weeks after this court denied the request for a temporary ban on the introduction of restrictions on banks in relation to cryptocurrency companies by the Central Bank of India.
Such attitude is highly concerned representatives of the crypto community of India. After all, if the court ultimately decides in favor of the Central Bank, it would be tantamount to a ban on the cryptocurrency operations in the country. Then, the local exchanges will have no choice but move operations abroad, increasing the risks both for companies and for users.