The Supreme Court of India to hold a Hearing on Cryptocurrencies BanJune 2, 2018
The Supreme Court of India has received five petitions challenging the Reserve Bank of India’s decision to ban and deal with cryptocurrency enterprises.
This year, the Supreme Court of India will hold its first hearing to discuss the Reserve bank of India’s decision last month. Since the banned of the RBI, all the entities under its regulation from dealing with crypto companies, the bank has received five different petitions.
At the hearing, all the participants are expected to discuss their views on the present policies, such as the Know Your Customer (KYC), and the Anti-Money Laundering (AML). Among the five different petitions, one of which was sent by the Internet and Mobile Association of India (IAMAI), the last one to be received.
Previously, Kali Digital Eco-Systems, an India-based company had pleaded their case already. According to the report, the company alleged the directive violated the rights of Indian’s citizens to execute any occupation, trade or business.
Even though the RBI issued a circular prohibiting its regulated-companies to deal with cryptocurrencies, the same paper recognizes the potential of cryptocurrencies. On the other hand, the RBI sees the technological innovation as a way to improve efficiency and inclusiveness of the financial system.
The RBI has concerns regarding the inherent risks of dealing with the currencies thus forbidding the communication between companies. Arun Jaitley, India’s Finance Minister, said that their government didn’t consider the digital currencies as “legal tender” – meaning that they are neither banknotes nor coins. Jaitley also added that while the Indian government is against the cryptocurrencies, it will continue to explore ways Blockchain technology can be integrated and used into their system.
Shaktikanta Das, a former Secretary of Economic Affairs, believes that it will be a major task for the government to regulate digital currencies effectively. Das is also one of the members of the 15th Finance Commission of India’s government. He also added that cryptocurrencies should not allow at all, as it is impossible for the government to trace all the transactions happening in people’s homes.
Despite everything, there are still support for the cryptocurrency industry in India. Today, there have been a total of two committees who are fully committed to fighting and advocating for digital currencies. With the Shaktikanta Das, the first committee was determined to legalize cryptocurrencies in India. The second committee was led by Subhas Garg, the country’s Secretary of Economic Affairs.