Yesterday on Sept. 11, the supreme court began its final hearings within the case between crypto currency exchanges and the Reserve Bank Of India ‘RBI’. However, for now also its not being still cleared by the court that if the Indian crypto exchanges would be getting any remission from the banking regulator’s imposed ban.
Previously this year in April, the Reserve Bank Of India imposed a crackdown on all business dealings with crypto exchanges and traders within a time period of 3 months.
After this 3 months deadline imposed, on 6th July and the once-booming crypto business in the country has suffered badly since then. As an example, Unocoin, a Bengaluru-based crypto exchange platform, has seen most commonly above 200,000 monthly transactions on its platform which were dropped to just 20,000 after the ban imposed.
Not astonishingly, the exchanges dragged the Country’s Supreme bank to the court. However, their plea for relief was not accepted by the court.
Besides the Reserve Bank Of India, the current political party in power ‘BJP’, Securities and Exchange Board of India ‘SEBI’ along with the ITD department were the parties against whom the case was filed by the exchanges.
The Indian Government explains their present stand against cryptocurrencies explaining that their primary desire is to safeguard gullible investors who are also exposed to scams or severe crypto price fluctuations. Like once during the starting of this year ‘2018’ when bitcoin lost nearly $200 billion in market capitalization in mere 2 months just after touching price hikes back in year 2017. This bearish market battle was even pointed out in the annual report released by the RBI last month.
However, the crypto exchange platforms have challenged the RBI’s decision chiefly on two grounds.
The first of the article 19(1) (g) of the Indian constitution that permits the citizens to carry on any occupation, trade, or business, and the second is the article 14 that prohibits discrimination and mandates equal protection underneath the law for all.
According to the exchanges, the crypto business follows correct KYC’s and anti-money laundering parameters that even facilitates the authorities to track back the cash path. Now, however, because of the ban imposed, an oversized part of the trade has shifted to cash transactions, that may boost illlicit activities. This outcome was even acknowledged by the Reserve Bank Of India Recently.
Rather than all these hearing, the case still remain’s open. As per the last hearing of the Supreme Court on Yesterday i.e 11th Sept., the next hearing for the case have been adjourned to a mere future date on 12th Sept. i.e Today.