The SC of India has set a new date for hearing arguments against the crypto banking restrictions by RBI. As directed by the court, the central bank has replied to the representatives of Crypto exchanges. The hearing for the same was supposed to resume yesterday.
Supreme Court of India Reschedules the Hearing Again
The Supreme Court of India was scheduled on 15th October to hear the arguments on banking restrictions by the Reserve Bank of India (RBI). Earlier this month, a court order was issued and the case was listed as “top of the board”. It gave the Indian Crypto Community a ray of hope that the case will move ahead yesterday.
However, as per Crypto Kanoon an Indian News Portal, the case was listed as item 2 in courtroom no. 5. The news portal said, “Since three judges bench has assembled today in court no. 5, The court could not hear the case”. On Tuesday, there was also a court order published for the case that read:
“Upon hearing the counsel the court made the following order … List on Tuesday, the 19th November, 2019 as first item, subject to overnight part-heard, if any.”
Previously, a two-judge bench held the hearing for the Crypto Case. Generally, it is the same judges that will continue to hear the case in the future too. It is seen that whenever a three-judge bench is there, the crypto case gets postponed.
Ban by RBI
RBI, the central bank of India issued a circular that banned financial institutions from offering any services to crypto businesses. This circular was circulated in April this year. The RBI explained these prohibited services as “maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/ sale of VCs [virtual currencies]”.
But the ban came into effect three months after the circular i.e. in July. The banks closed the accounts of Crypto Exchanges, forcing some of them to lose their local business operations. This resulted in an instant response from various industry stakeholders in the form of written petitions to challenge the ban.
After numerous delays, the detailed hearing of the case started on August 8th by the Supreme Court. The petitions were extensively challenging the power of RBI over Cryptocurrency. The ban also affected the Pune City Police as they were unable to cash out the seized cryptos from a Ponzi scheme.
The draft bill submitted by the Inter-Ministerial Committee (IMC) was submitted in February this year and is still being deliberated by the Indian Government. The bill seeks a blanket ban on all cryptocurrencies except for the ones issued by the state. This bill was made public on 23rd July. The Crypto Community in India disagrees with the bill and is campaigning for re-evaluation of IMC recommendations by lawmakers.