The case against the crypto banking ban by the reserve bank of india (RBI) was unexpectedly heard at the country’s supreme court on Thursday. However, senior advocates for the parties were reportedly absent, thus a new date has been set and the crypto case will be “top of the list” on that date.
Caught by surprise
The Indian supreme court was scheduled to hear the petitions against the crypto banking ban imposed by the country’s central bank, the RBI, on Tuesday once repeatedly postponing it last year.
The case was finally heard on Thursday. However, according to Twitter account Crypto Kanoon, an Indian platform for blockchain regulatory news and analysis, the “crypto vs. RBI matter reached in the supreme court. As the matter was surprising to achieve, sr. advocates showing for parties weren't present.” The user continued to detail:
"Now it'll come for hearing on 26th February on ‘top of the list’ i.e., it'll be at serial no. 1 on the Cause List."
After several postponements throughout the second half of last year, few expected the case to be heard this week. Quartz India talked to a lawyer representing some of the crypto exchanges who said on Monday that “The case … is unlikely to come up for hearing this whole week.” In November’s hearing, lawyers representing crypto exchanges asked the court for a full-day hearing “so that the case could be expedited,” the news outlet noted, adding that “Despite this, delays are expected.”
RBI Ban and Crypto Regulation
The RBI issued a circular on April 6 last year banning regulated financial institutions from providing services to customers and businesses dealing with cryptocurrencies. The ban took impact in July and crypto exchanges’ bank accounts were closed. A number of petitions have been filed with the court to lift the ban.
Most crypto exchanges in India responded to the banking restriction by launching exchange-escrowed peer-to-peer (P2P) services which have reportedly gained popularity. One of the country’s largest exchanges, Zebpay, stop working its exchange operations in India because of the banking problem. Another major exchange, Unocoin, tried to launch fiat kiosks however ran into trouble with the law when officers mistook its first machine for an ATM that violates the RBI ban.
Recently there have also been reports of banks, like Kotak Mahindra Bank and Digibank, closing the accounts of customers they found creating crypto-related transactions. However, Indian crypto traders and users have reportedly found some way to bypass banks closing their accounts.
Meanwhile the regulatory framework for cryptocurrencies is being drafted by a panel headed by the country’s Secretary of the Department of Economic Affairs, Subhash Chandra Garg. Moreover, the finance ministry recently updated Parliament on its crypto regulatory progress but said that there's no specific timeline for clear recommendations.
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