India's Supreme Court Demands Govt. Stance on Cryptocurrency, Ban

India’s Supreme Court Demands Govt. Stance on Cryptocurrency, Ban

In the midst of a case on the Reserve Bank of India’s banking ban against cryptocurrency enterprises, the Supreme Court of India has ordered the nation’s central government to file an affidavit within two week’s time to clarify its stance on digital assets. 

Also see: Shenzen Arbitration Commission: It’s Legal to Hold, Transfer Bitcoin

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Give Us an Answer, And Do It Quickly

The Supreme Court of India has asked the nation’s central government, or the Union Government, to present its ultimate position on digital currencies, the latest wrinkle in India’s high stakes legal showdown between the Reserve Bank of India (RBI) and domestic cryptocurrency enterprises.

The high court granted the government two weeks to present its affidavit regarding both cryptocurrencies generally and the RBI’s April 2018 diktat interdicting banks from facilitating crypto exchanges.

The case, which began earlier this year, has seen a series of twists and turns in recent months.

Starting in July, the Indian Supreme Court has temporarily upheld the RBI ban and postponed its final decision on the matter several times. With its new demand, the high court seems to finally be speeding toward a conclusion of the case.

Good or Bad for the Indian Crypto Landscape?

It looks like the moment of truth is upon Indian cryptocurrency users. So what comes next?

In comments to Bitsonline, Rohan Dwaipayan Bhowmick, one of the first petitioners to call for constructive regulations in the Indian crypto market, said that the government’s counter-affidavit could strengthen the case of crypto exchanges in the country.

“I believe the government may partially allow cryptocurrency in the country,” Bhowmick said. “Despite the ban, people are using P2P for transfer and no one can stop it. If they allow cryptocurrency in India, it will help the economy.”

However, RBI’s counsel Shyam Divan told the Supreme Court that the nation’s central bank imposed the crypto banking ban to curb the use of digital currencies altogether.

The RBI doesn’t want people using cryptocurrencies in general.

Whether the court will be of a mind with Divan or Bhowmick remains to be seen, though its answer looks to be right around the corner now.

And whatever happens next, Bhowmick pointed out that regardless of the winding case, the domestic cryptoeconomy has still seen considerable growth as of late via peer-to-peer trading. As the saying goes: where there’s a will, there’s a way. 

Will the central government’s affidavit be in favor of the crypto space? Share your views in the comments section.


Images via Pixabay

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