Author: Jagdish Kumar, India
With petition on cryptocurrency increasing after the Reserve Bank of India (RBI) circular of 6 April 2018, Indian Supreme Court has decided to take all the petition related to cryptocurrency and hear it on 20 July 2018.
RBI in its circulate in April has asked banks and non-banking financial companies not to deal with or provide services to any individual or business entities dealing with or settling [cryptocurrencies].
On that, a company Kali Digital Ecosystems – which planned to launch its crypto exchange, CoinRecoil has filed a petition in the Delhi High Court, which was later transferred to Supreme Court.
Similar petition was filed in various other high courts in the country, so the Supreme Court decided that no petitions can be filed in any High Court of India against the Reserve Bank of India’s (RBI) April 6 circular about ending all dealings with cryptocurrency.
The Supreme Court declined to grant an injunction sought by 11 different crypto-related businesses against the RBI decision on 17 May 2018 and ordered that any petitions already pending against the RBI’s anti-crypto circular will be transferred to the Supreme Court.
The legal counsel for the petitioner in the case said that one of the key arguments made out in the petition was that the circular was not preceded by any stakeholder consultation, which is what the latest order gets to.
It is believed that other exchanges operating in India are too thinking of approaching the highest court to underline their say in the matter.
According to an estimate over six petitions filed against RBI by various cryptocurrency companies, individuals and IAMAI has been clubbed and are sub judice in Supreme Court and there’s going to be a taken up for hearing in July 2018.
As the legal battle will take a long time to end, many cryptocurrency companies in India are already planning to shift their bases to countries like Singapore and Switzerland where business climate is already friendly for cryptocurrency companies.
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