Supreme Court Of India Delays Crypto Ban Hearing

The Supreme Court of India presiding over the petition of the central bank’s ban on crypto dealings within the country has moved the much-awaited judgment to September 11.

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The Supreme Court of India presiding over the petition of the central bank’s ban on crypto dealings within the country has moved the much-awaited judgment to September 11.

The judgment was originally scheduled to be passed on July 20.

The move for the ban began in April when the Reserve Bank of India (BAI) announced that regulated financial institutions would be prohibited from servicing cryptocurrency exchanges and other related businesses within the country.

The Supreme Court upheld the ban pending the Friday hearing. The hearing was expected to include all final arguments to the case.

The fact that certain organizations, including the Securities and Exchange Board of India, have not submitted their evidence before the deadline, which led to the deferment and delay of the final judgment till September 11.

The significance of the hearing

The hearing was important as the deadline to assess the ban on banks dealing with crypto-related accounts expired July 5.

Since the expiration, Indian citizens have not been able to buy and sell crypto on exchanges.

As a result of the ban, crypto exchanges and companies remain unbanked in India.

Following the ban, many exchanges have to change their model of moving from exchange operations, with a handful opting to P2P network overseers such as Coindelta and Koinex.

Many other exchange platforms have had to shift to crypto-to-crypto pairs as well since the INR lifelines weren’t available to them.

Prominent crypto platforms such as Zebpay, Coinome, and BuyUcoin all disabled the deposit and withdrawal of fiat.

A lot of significant was attached to the hearing, judgment on the ongoing RBI and crypto riffle was to be pronounced.

The hearing, if concluded, should have brought the much-needed clarity on the government’s stance towards the crypto industry and its operation in the country.

Reason for the Delay

The scheduled hearing was conducted in the presence of prominent attorneys of India Judiciary including the chief justice Dipak Misra.

Other judges on the panel were AM Khanwilkar and DY Chandrachud. Tweets were passed by Crypto Kanoon (@cryptokanoon) to confirm the reason for the delay.

“Limited arguments were advanced on behalf of IAMAI and RBI today. Since SEBI and few others have not filed their response to the Petition seeking regulation, so the Court directed for completion of pleadings. Final arguments on 11th September.”

Conclusion

The uncertainty of the future of the crypto industry seems to have just been delayed longer in one of the world’s biggest markets.

In speaking to Quartz India, Deshpande Rashmi, a lawyer representing Kali Digital, which runs an exchange remained hopeful about the matter, saying:

“Our expectation is that the hearing will be on the basis of merit where we get to present the case on why the RBI circular is unconstitutional and should be quashed.

The crypto industry may be crippling in India, but still, the tweets suggest that there is hope that the decision may come in the favor of regulations over the ban.

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