Should India ban cryptocurrencies? Some officials resigned and the central bank was even charged

The Supreme Court of India finally heard the case of cryptocurrency today, after it has been postponed several times. The trial involved the government's cryptocurrency policy and the petition to challenge the central bank's cryptocurrency business ban. The latter listened to some details, and the former was further postponed at the request of the government.


Shouldn't the cryptocurrency be banned? Still an unknown number

According to local media Crypto Kanoon reported last week, the Indian government plans to present the controversial Bitcoin injunction bill at the parliamentary meeting from December to January.

The decision was made at the court hearings of the Reserve Bank of India (RBI) and the local cryptocurrency exchange. Officials representing the Ministry of Finance of the Modi government submitted a draft bill to the Supreme Court judge, which will lay the foundation for the future of Indian cryptocurrency.

Crypto Kanoon said the draft was drafted by an intergovernmental committee led by former Economic Affairs Minister Subhash Chandra Garg. The document recommends a total ban on Bitcoin and all types of "private cryptocurrencies" and 10 years imprisonment for those who do not comply.

After submitting the draft, Garg tweeted that his "commitment is very accepting and supporting distributed ledger technology… (but) private cryptocurrencies have no real value. It is forbidden to be correct." The Commission noted the price of cryptocurrencies. "Extreme volatility", that "the private cryptocurrency should not be allowed".

“The committee recommended a law prohibiting the use of cryptocurrencies in India and criminalizing any activity related to cryptocurrencies in India.”

Shortly thereafter, Indian Prime Minister Modi reorganized senior officials and transferred Garg to the Indian Ministry of Energy. According to reports, Garg was not satisfied with this change and subsequently applied for voluntary retirement.

At the same time, government officials asked the Supreme Court to postpone the hearing until January next year. They confirmed that they intend to introduce a Bitcoin injunction bill to the Indian House of Commons during the winter meeting.

As for whether the ban will eventually pass, it is still unknown.

India’s central bank was sued in court

In July last year, the Bank of India issued an announcement prohibiting banks from providing services to companies involved in bitcoin and other cryptocurrency-related businesses. The Indian Internet and Mobile Communications Association (IMAI) subsequently brought the Bank of India to the Supreme Court. It accuses the federal agency of being biased against India's emerging cryptocurrency industry and believes the announcement violates the constitution.

In the past 12 months, the case has been postponed several times until August 8, 2019. IMAI's lawyers argue that Bitcoin is not a sovereign currency, but a commodity, which is why the decision on bitcoin should be made by the Securities and Exchange Commission of India (SEBI), not the Bank of India. The lawyer also added that the Indian central bank exercised the same powers as the parliament while forcing the Indian cryptocurrency market to close.

The IMAI lawyer also refutes the Indian central bank’s view that cryptocurrency exchanges can be traded without a license, saying that such companies do not need to obtain authorization because Bitcoin and other cryptocurrencies have no laws in India. definition. The lawyer also mentioned that due to the notice of the Bank of India, some companies are either facing losses or losing business opportunities.

The court recommended that IMAI file a new lawsuit against the Bank of India under section 19(1)-g of the Indian Constitution, which is intended to protect all citizens from any occupation or any industry, business or business. Only a reasonable limit can stop a person from working.

The case will continue on Wednesday, August 14, 2019.