The Supreme Court of India has banned lower courts from hearing any petitions related to cryptocurrency. A hearing by the Supreme Court (SC) will be held on July 20, 2018, to determine the fate of cryptocurrency trading in India. The SC also decided against putting any stay on the RBI circular until the matter is under subjudice.
The Reserve Bank of India (RBI) on April 6 issued a circular that stopped subordinate financial institutions including commercial banks from dealing in cryptocurrencies that included Bitcoin. You can see the RBI circular here. In a circular released on April 6, the central bank gave banks three months to fix their businesses with cryptocurrency traders. The set three-month period will come to an end on June 6.
Various cryptocurrency traders and organisations from across the country have moved courts against this RBI circular. Reacting to a similar case, the Supreme Court asked all the pending petitions spread across all the courts in the country to be clubbed together. The SC, on Thursday, May 17, agreed with RBI counsel Shyam Divan and directed to put a stay to all cases until July this year. It also asked all state-level high to stop accepting any further petitions.
Crytptocurrency Trading In India
After hearing the writ petition of Siddharth Dalmia and also similar other petitions filed in the SC, a three-judge bench which was headed by the CJI directed all high courts in the country to entertain any petition regarding the RBI circular on ‘Prohibition on dealing in Virtual Currencies’. The order is intended to consolidate all the legal proceedings into one comprehensive judgement that will decide the future of cryptocurrency trading in India.
July 20th will be etched in the minds of cryptocurrency traders and enthusiasts as the date will decide the fate of cryptocurrency trading in India. Let us wait and watch to see whether the Supreme Court will make a decision in favor of Cryptocurrency trading in India or will favor the RBI, who is against cryptocurrency trading.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]