- The court has given authorities the last opportunity
- India is at crossroads regarding cryptocurrency adoption
- Investors, promoters and exchange houses eagerly awaiting verdict
The Supreme Court of India has given the Indian Authorities a four-week ultimatum to present a cryptocurrency regulatory framework. Should the government fail to adhere to the directive, the court will go ahead to pronounce its judgment notwithstanding.
Crypto Regulations Finally?
According to the report, the country’s highest court declined to hear the parties involved in the long-stretching case related to the April 2018 blanket cryptocurrency ban by the Reserve Bank of India (RBI).
The court directed the Union of India the four-week deadline to come up with the regulatory policy. Commenting on the development, Crypto Kanoon, a blockchain and regulatory news and analysis platform specializing in blockchain events and startup legal advisory tweeted:
Supreme Court has granted 4 weeks to Indian Government as the final opportunity to bring about a policy (Rules and Regulations) on Crypto currencies!
For details, please watch this video both in Hindi and English. https://t.co/R8E5wuGPHJ
— Crypto Kanoon (@cryptokanoon) February 25, 2019
Local news outlet Inc42 stated that the two-judge bench of Justice Rohinton Fali Nariman and Justice Vineet Saran insisted it will go on and pronounce a judgment if the government doesn’t adhere to its directive. This, according to the court, is the last opportunity the authorities have to present the regulations.
The Reserve Bank of India (RBI) issued a circular in early April 2018 barring all banking institutions from providing banking services to any person or institution involved in cryptocurrencies. The ban, which took effect in July of the same year has caused many crypto-related businesses to grind to a halt while others have had to relocate to other regions in the world that are crypto-friendly.
Following the blanket ban by RBI, Ahmedabad-based crypto firm Kali Digital EcoSystems went to the Delhi High Court on April 17, 2018, asking the court to abolish the RBI order under Articles 19 (1) (g) and 14 of the Indian Constitution. The High Court assessed the circular and ruled the decision by RBI to prohibit crypto-related businesses from accessing banking services was a clear violation of the constitution. However, there was a stalemate after that as the Supreme Court continued to support the ban by the Central Bank even after hearing several petitions.
India at Crossroads
India has for a while now been at crossroads regarding the adoption of cryptocurrencies. On one hand, cryptos are considered black market tools while on the other hand, they are catalysts that can be used in the fight against poverty. The battle for their regulations is at the Supreme Court following some petitions filed in the lower courts.
As the battle comes close to an end in the wake of some injunctive petitions filed in the Supreme Court, investors, promoters and exchange houses are awaiting a verdict that will decide whether to revoke the blanket ban by RBI on the use of cryptocurrencies in the country’s banking systems.