Indian Supreme Court judges and IAMAI lawyers disagree on bills under the central bank’s ban on encryption

The Supreme Court of India continues to hear the Indian Reserve Bank (RBI) encryption restrictions today. Currently, the hearing has begun. According to local media Crypto Kanoon, Ashim Sood, legal adviser to the Internet and Mobile Communications Association of India (IAMAI), explained why bank support is necessary. If the exchange follows the Foreign Exchange Control Law, there will be problems in remittance remittance business. In response, the court stated that in remittance, please obtain permission from the relevant authorities. Subsequently, the lawyer began to study the legality of the RBI ban, the RBI could not be separated from the powers stipulated in the Banking Supervision Law, and the decision to prohibit or control economic activities must come from the legislature. Therefore, the RBI issued a notice on April 6 last year prohibiting banks from The actions of the money business to provide services are not legal. In addition, lawyers pointed out that the RBI can only exercise this power in the presence of existing legislative policies in the parliament. However, in the current case, there is absolutely no legislative policy support behind the actions taken by the RBI. The judge stated that the RBI power was given in Article 45 J of the RBI Act to formulate policies. Counsel responded that 45J is about NBFC (Non-bank financial company in India), but we are concerned about banks. Article 45J provides RBI's power to make policies, but RBI has taken action under Article 35A of the Banking Supervision Act. The judge said that the two legislations are homogenous. Currently, the hearing is discussing other countries’ laws on cryptocurrency.