India’s Supreme Court Allows Central Bank Two Weeks to Justify Crypto Ban
By Mark Lemon – Cryptocurrency Dealer
The supreme court of India has criticised the way the nation’s central bank has handled the ban of crypto business and has ordered it to address complaints in two weeks, as detailed through Cointelegraph.
On August 21st, the latest session of a present hearing questioning the actions of the Reserve Bank of India (RBI), the court has ruled out that the officials had not given proper reasons behind their ban back In July 2018. RBI had prohibited banks from dealing with crypto operators which affected any business looking to buy and sell Bitcoin or provide services around cryptocurrencies looking for banking solutions.
This in turn ceased the operation of any exchange providing services to buy and sell cryptocurrency in India. On Wednesday, the Supreme Court’s Justice Rohinton Fali Nariman had launched fiery criticism for such actions. At the hearing, Nariman, as summarised by advisory resource Crypto Kanoon, had given the RBI two weeks to justify its actions on the banning of crypto businesses.
However, RBI is unable to provide a response to the representatives at this hearing and instead states they are forwarding to the government in which Justice Nariman reiterates “this is not an answer”.
Crypto Kannon then summarised through Twitter the outcome of the hearing:
“Justice Nariman directs that RBI must respond to the representation in the manner appropriate. Offers to defer the case for two weeks as part-heard, let the answer come on reconsideration of banking ban by RBI. RBI has agreed.”
This outcome to the case suggests RBI may have rushed banning operators from buying and selling Bitcoin, whilst failing to follow procedure and provide ample reasoning. With only two weeks to respond, we could potentially see development on this ban.
Even if RBI loses the case, the ban could still be in place making it difficult for residents of India to buy and sell cryptocurrency.
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