September 25, 2020

Indian Supreme Court to Consider Legality of Cryptocurrency Trading Restrictions

Indian Supreme Court to Consider Legality of Cryptocurrency Trading Restrictions

On October 15, the Supreme Court will host a meeting on the legality of the actions of the Reserve Bank of India (RBI) aimed at restricting the trade in cryptocurrencies.

During the first hearing that passed 21On August 2019, the court ordered the Central Bank to give a detailed answer to the petition filed by the Internet and Mobile Communications Association of India (IAMAI) on behalf of cryptocurrency exchanges. Trading floors expressed their disagreement with the RBI decision to ban the provision of banking services to crypto companies, because of which local residents can not buy or sell digital assets for fiat currency. According to business representatives, officials needed to use alternative measures, in particular, apply the law on combating money laundering to cryptocurrency exchanges.

RBI employees complied with the court order andsent an official response to the IAMAI office, which in turn prepared counterarguments and is going to voice them during the upcoming meeting. The plaintiffs are seeking to remove restrictions on access to banking services, justifying their position by the fact that the government imposed unreasonably harsh sanctions.

However, in the future, virtual currencies maybe completely banned in India. Now the authorities are considering a bill developed by the Interdepartmental Committee under the leadership of the Secretary of the Department of Economic Affairs Subhash Chandra Garg. The text of the regulatory act entitled “Prohibition of cryptocurrencies and the regulation of official digital assets 2019” was published on July 23 this year. It states that the Committee recommends criminalizing any activity related to non-state virtual currencies.

Indian cryptocurrency community callslawmakers change their stance on digital coins. Member of Parliament Rajev Chandrasekhar intends to support the crypto industry by submitting documents received from commercial enterprises for consideration by the government and Parliament.