The Supreme Court of India after a second meeting decided not to lift the ban on cryptocurrency transactions, regarding to the local news source Financial Express, from 21 July. The ban was adopted by the Reserve Bank of India in April this year.
In April of this year, the Reserve Bank of India has announced that it will cease to provide services to companies and individuals that use the cryptocurrency, arguing that the high level of risk.
A consequence of the circulation of digital currencies illegal transactions
Main defender RBI Shyam Divan said that it is necessary to adjust the bitcoin (BTC) and other cryptocurrencies, as this relatively new type of settlement funds "encourages illegal transaction". Divan also stressed that "the problem of crypto-currencies has a huge strategic dimensions”: according to him, cryptocurrency has huge potential to influence global money flows and the economy.
"The problem of cryptocurrency is of huge strategic dimensions" - Shyam Divan, lawyer
Strict limitation associated with all transactions involving crypto-currencies and the national currency of India is Indian rupee. Many believe that this has a negative impact on the cryptocurrency market.
The second meeting was held on 20 July
20 Jul hosted the second session of the Supreme Court on the issue of cryptocurrencies. The participants of the process did not provide sufficiently convincing arguments for the abolition of the ban, so it remains in force, and the final hearing initially scheduled for the period from 20 July to 11 September, was postponed. Before September 11, all interested participants in the process may send their comments and suggestions for consideration in court.
However, on that date the meeting may be canceled if companies interested in challenging the decision, within four weeks do not provide weighty arguments in favor of lifting the ban. A number of organizations intend to challenge the decision of the RBI and are already preparing a written document.
Initially, April the ban received a backlash from the Indian crypto community. Was created online petition, which demanded the complete abolition of the ban (she collected more than 44,000 signatures). In May, the Supreme Court of India has decided to appoint a new date for hearing (July 20).
Indian authorities want to take control of the cryptocurrency market
In some sources there is information that the government intends to introduce at the legislative level to create certain conditions for the functioning of the cryptocurrency market under its own control. Many believe that the transfer of the final meeting is that the officials have not yet prepared a new legal framework for the regulation of cryptocurrencies. There is also information that the Indian authorities intend to equate Bitcoins and similar electronic currencies to commodities.