The Supreme court of India will hold in the July meeting, which will render a decision regarding the increase in complaints related cryptocurrency industry, filed against the Central Bank of the country.
The Supreme court has banned all other courts to accept petitions after the adoption of the five petitions against the decree of the Reserve Bank of India (RBI), which all banking institutions in the country were forbidden to provide services to cryptocurrency businesses. In early April, RBI issued a circular, which States that the entities that it regulates, «should not carry out operations or provide services to any individuals or entities dealing with cryptocurrencies».
According to the report
The Economic Times, the hearing will be held July 20.
One of the petitions was filed by start-up Kali Digital Ecosystems, which is planned to run the crypto currency exchange CoinRecoil. Two other petitions to the Supreme court, was originally filed in the Supreme court of Delhi and Supreme court of Calcutta, reports the Times. Trajjding Rastogi, senior partner of the law firm involved in the filing of petitions, said:
«One of the key arguments contained in the motions was the fact that before issuance of circular RBI had not consulted with interested parties, but had to do it.»
After step RBI group exchanges said they also want to challenge the circular of the Central Bank. According to representatives of the group, their goal is to achieve a hearing in the Supreme court.
The Supreme court of India occupies an ambiguous position in relation to the arbitrariness of the Central Bank of the country. At the end of April the Supreme court of India published
a notification addressed to the Reserve Bank (RBI), the Finance Ministry and the Tax service, 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. Although this procedural decision is theoretically irrelevant to the final outcome of the petition, the mood of the representatives of the Supreme court is alarming. In this regard, it is almost impossible to predict what decision will be taken in July.
In case of cancellation of the ban on banking services, this will be a major victory for Indian cryptocurrency community. However, if the court will stand by my previous opinion and support the ban of the Central Bank, the cryptocurrency industry in the country will face serious problems and most companies will have to move to other jurisdiction, as the denial of banking service at this stage of development of the industry is almost tantamount to a ban on the cryptocurrency companies.