May 21, 2024

Indian Supreme Court adjourned hearing banning cryptocurrency companies for next year

This week, the Supreme Court of India granted the request of lawyers of the Central Bank of the country and decided to postpone theconsideration of the ban on banking services for cryptocurrency companies for the next year.

The court decision followed the statementthe lower house of the Indian Parliament, which had previously deferred consideration of the cryptocurrency bill until next year. The Prohibition of Bank of India (RBI) trial was scheduled for Tuesday.

However, the court convened the parties to hear the case on Monday at the request of the senior RBI lawyer, who asked to postpone the hearing. A court order issued on Monday reads:

“After hearing a lawyer, the court issued the following order. In accordance with the petition, the consideration of the case was postponed until January 14, 2020. "

Problems in the cryptocurrency industry began inIndia a year and a half ago, when the RBI forbade banks and financial institutions to provide services to companies working with cryptocurrencies. Cryptocurrency exchanges were forced to adapt to the ban, and many of them stopped their activities in the country and moved the business to other jurisdictions.

The hearing has been adjourned repeatedly, indue to regulatory uncertainty and the unexplained position of the country's government regarding crypto assets. Last fall, the Supreme Court demanded that the government clarify the position regarding cryptocurrencies, and there were even reports that the country would issue regulation before the end of 2018, but this did not happen.

From the ban on cryptocurrency servicescompanies in India suffer not only industry representatives. Police, having confiscated BTC for $ 1.2 million, lost access to funds because the bank blocked the account. It is possible that in the near future it will be completely forbidden to use cryptocurrencies in India, and companies and individuals who continue to work with crypto assets may be put on trial.