Yesterday on Sept. 11, the supreme court beganits finalhearingswithin thecase between crypto currency exchangesand 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’simposed ban.
Previously this year in April, theReserve Bank Of India imposed a crackdown on all business dealings with crypto exchanges and traderswithin a time period of 3 months.
After this 3 months deadline imposed, on 6th July and the once-booming crypto business in the countryhas suffered badly since then.As an example, Unocoin, a Bengaluru-based crypto exchange platform, has seenmost commonly above 200,000monthly transactions on itsplatform which were dropped to just 20,000 after the ban imposed.
Notastonishingly, the exchanges dragged theCountry’s Supreme bankto the court. However, their plea for relief was not accepted by the court.
Besides theReserve Bank Of India, the current political party in power ‘BJP’, Securities and Exchange Board ofIndia‘SEBI’ along with theITD 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 decisionchieflyontwogrounds.
The first of the article 19(1) (g) of the Indian constitutionthat permitsthe citizenstocarryon any occupation, trade, or business, and the second is the article14that prohibits discrimination and mandates equal protectionunderneaththe law for all.
According to the exchanges, the crypto businessfollows correctKYC’s and anti-moneylaundering parameters that even facilitates the authorities to track back the cashpath. Now, however,because oftheban imposed,an oversized part ofthe trade has shifted tocashtransactions,thatmay boostilllicitactivities. 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.