The supreme court of India has challenged the central bank’s ban of commercial banks servicing cryptocurrency business. The apex court has gone ahead to give the bank leaders time to justify their actions.
The Reserve Bank of India (RBI) has barred banks from working with cryptocurrency exchanges and other crypto-based businesses since 2018. According to the most recent hearing on Aug 21st involving the RBI’s stance towards cryptocurrency operations, the Supreme Court ruled that the central bank had not sufficiently justified the ban.
Justice Rohinton Fali Nariman of Supreme Court shared severe criticism for the RBI’s handling of crypto business in the country. Fali gave the central bank two weeks to come up with a justification for the continued ban.
According to Crypto Kanoon on twitter the court order reads: “After hearing arguments we are of the view that detailed representations by exchanges purusant to this court’s order 17.05.2018, have not been answered point by point, therefore RBI to reply them with in 2 weeks. SG to furnish various docs within 1 week”
“Exchanges are not asking to uplift the ban but they are only asking you to reconsider. If you dont give answer to it, I will pass the judgment.”
“Mr. Sood reads out the suggestions given to RBI by exchanges. That Money laundering Act can be made applicable to exchanges as intermediaries making them responsible for reporting directly. or enjoining on banks to make additional requirements for exchanges.”
The hearing surfaced a month after an undrafted bill in July showed that the Indian government was considering an outright ban on bitcoin and cryptocurrency.