India’s apex judicial body, the Supreme Court of India indulged in a crucial hearing session of the much-talked-about case of crypto vs. the Reserve Bank of India on Thursday, as per the reports. The Reserve Bank of India has always kept a skeptic view towards cryptocurrencies and their proliferation in the Indian marketspace. The banking regulatory organization filed a case against the ban of cryptocurrencies in India is the country’s supreme court.
According to the reports, the Thursday hearing was a follow-up of the hearing conducted the very previous day with lawyers picking up arguments in continuation from the past day. Mr. Shyam Divan, the counsel for RBI, started by explaining the RBI’s reply to a representation of crypto exchanges’ in the country along with details about the P2P exchange platforms actively operating in India as well as their money transfer methodologies. He strongly stated that the industry is exposed to risks concerning AML, FEMA, and CFT.
The honorable judge remarked that the circular given by RBI restrained banks from offering services to crypto exchanges but failed to put a full stop on crypto trading. The counsel accepted that the measures taken by the banks are not so result-oriented but undoubtedly brought down the volume of crypto transactions significantly.
Justice Nariman points a finger towards the exchanges’ counsel and says by this their business has come to an end and the constituent, i.e., trading of crypto is still active,
stated Crypto Kanoon report.
The RBI vs. crypto hearing has shown many variations in the last few days. Here, you can get complete information about what happened inside the courtroom yesterday.
The court quoted that “being an honest contributor to the blockchain is more profitable than trying to tamper with the chain.” While proving his point, the RBI counsel highlighted that after the release of the RBI circular, the crypto prices had fallen badly, thereby bringing the overall market down. He mentioned various judgments to prove his point, including the one which limits the court’s intervention
when an expert committee like RBI has acted under its statutory power as it is an expert body for a particular domain.
Ashim Sood, the counsel for the Internet and Mobile Association of India, also presented his submissions before the court. He stated that the Central Goods and Services Tax Act does not prohibit people from using digital currencies as a medium of exchange. However, because of volatile nature, people do not opt for virtual currency payments, he added.
We don’t say that it is not possible to separate crypto from blockchain. But there is a valid and legitimate reason for both to go together. Crypto makes blockchain viable for certain uses,
read Crypto Kanoon’s report by mentioning about Sood’s submission. He gave a strong opposition to RBI’s claims of having the authority to ban cryptos.
The counsel presented several arguments to prove RBI’s claims wrong. He refuted the bank’s terrorism financing argument too by saying that the central bank is trying hard to stop crypto activities indirectly as it does not have direct control over the arena.
Crypto Kanoon commented,
It is a wonderful experience to witness a supreme court judge explaining facts about blockchain and advocating its immutability. It is more exciting to see a judge upholding Satoshi’s view.
After analyzing all the talks throughout the day, CryptonewsZ stated that RBI had not done proper research before declaring its anti-crypto directive.