India’s Supreme Court has just released a statement criticizing the country’s central bank. Specifically, the Reserve Bank of India is being criticized for how it has handled the country’s cryptocurrency ban. Moreover, the central bank has now been given just two weeks to address complaints over the crypto ban.
India’s Supreme Court orders RBI to justify crypto ban
This news came in the latest session of several hearings, detailing the Reserve Bank of India’s actions. A court judge has just ruled that Reserve Bank of India officials have not appropriately responded to concerns from the cryptocurrency sector over its crypto ban.
To preface, the Reserve Bank of India stopped banks from doing any business with crypto operators back in July of 2018. This effectively became a ban for crypto exchanges and other crypto outlets.
However, this decision has now come under harsh criticism from the Indian Supreme Court Justice, Rohinton Fali Nariman. Crypto Kanoon, which reported on the hearing, notes that Nariman gave the Reserve Bank of India only two weeks to justify with its actions.
Crypto Kanoon tweeted that Justice Nariman was unhappy with the answers provided by the Reserve Bank of India (RBI):
“Now [J]ustice Nariman questions RBI why you have not properly responded to the representation. You just said that we are forwarding to Govt. Angrily says this is not an answer”
What does this mean for crypto in India?
In addition to this, Crypto Kanoon remarked that the case then took “the most unpredictable turn”, with Justice Nariman ordering the Reserve Bank of India to come up with a proper answer within two weeks.
“Case takes the most un[p]redictable turn. Justice Nariman directs that RBI must respond to the representation in the manner appropriate. Offers to defer the case for 2 weeks as part heard, let the answer come on reconsideration of banking ban by RBI. RBI has agreed.”
The news that the Indian Supreme Court is seemingly siding with crypto supporters indeed comes as a surprise. However, it is unclear what repercussions it could have if the Reserve Bank of India fails to give a satisfactory answer within two weeks.
Some have speculated that it could lead the court to try and reverse the ban on banks to do business with cryptocurrency operations – however, it is unclear whether this is simply wishful thinking. No matter what, we will seemingly have an answer within two weeks.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.