Indian Supreme Court Asks RBI to Justify Crypto Ban
India’s Supreme Court has slammed the RBI over its handling of a cryptocurrency business ban and ordered it to address complaints.
In the latest session of an ongoing hearing into the actions of the Reserve Bank of India (RBI) on Aug. 21, the court ruled that officials had not appropriately responded to concerns from the cryptocurrency industry over its actions.
The RBI forbade banks from servicing crypto operators such as exchanges in July 2018 — effectively stopping such platforms from continuing to operate in India.
On Wednesday, the move came in for severe criticism from Supreme Court Justice Rohinton Fali Nariman.
As summarized by advisory resource Crypto Kanoon, which was present at the hearing, Nariman gave the RBI just two weeks to justify its actions. One update on Twitter read.
“Now justice Nariman questions RBI why you have not properly responded to the representation. You just said that we are forwarding to Govt. Angrily says this is not an answer,”
RBI agrees to two-week deadline
Discussing the final outcome of the hearing, which is now over, Crypto Kanoon summarized:
“Case takes the most unlredictable turn. Justice Nariman directs that RBI must respond to the representation in the manner appropriate. Offers to defer the case for 2 weeks as part heard, let the answer come on reconsideration of banking ban by RBI. RBI has agreed.”
The case comes at the same time as the Indian government considers making cryptocurrency illegal for all Indians. In July, a government committee recommended Delhi moves to ban all tokens except an official digital version of the rupee.
Well, an expert estimated the country would lose a market worth around $13 billion if it signed the ban into law.