Today, September 12, the Supreme court of India should conduct the final hearing and verdict on the case about the ban on participation of domestic banks in cryptocurrency circulation. However, according to lawyers, this outcome is unlikely.
Mohammed Danish (Mohammed Danish), advocate in the Supreme court of Delhi and counsel for legal issues in Crypto Kanoon explained that the final decision is unlikely to be made today, because the petition of the cryptocurrency exchanges on the revision of the ban said only the Central Bank (RBI). In fact, the participants in the process so much more: the court including the expected response to petitions from the Government of India, Council of securities and exchange Board (SEBI), Department for ensuring law and order and the income tax Department.
“The case was transferred to judge of Fali Nariman [Fali Nariman], and no one except the RBI, has not sent a response to the petition. Because of this, the court may postpone the hearing to a later date, so that the pronouncement of the final verdict is unlikely to happen today,” said Danish.
In accordance with the laws of India, all parties referenced by the author of this or that the petition must attend the hearing. Copies of their responses are also provided to the author of the petition to build the argument.
The lawyer representing in court the interests of the exchanges and who wished to remain anonymous, said:
“If this were a civil action, the judge could make a decision unilaterally. But since we are talking about a constitutional matter, the case in the presence of only one side is unlikely, and most likely, the hearing will be delayed”.
State agencies generally are not required to provide written responses to petitions addressed to them. Therefore, most likely, the case will become protracted, as there is no recorded testimony of representatives of SEBI, government bodies and others. However, in the case that the parties would deliberately delay the process, their requirements for deferment can be challenged. So, at least, says Deshpande Rashmi (Rashmi Deshpande), a lawyer and representative in court of crypto currency exchange Kali Digital Eco-Systems:
“If tomorrow any of the parties requests a postponement, we have all grounds for objection as they are not given the answer [to the petition] in due time”.
The RBI response, the court received on 8 September. The document contains an explanation of why the Bank is not confident in crypto-currencies as the asset class, as well as arguments in favor of the fact that the Reserve Bank has full authority to oversee the ecosystem. However, advocates of cryptocurrency exchanges argue that the response text applies only to specially selected items and does not provide a full assessment of the current state of the cryptocurrency industry in India.
The RBI ban on the cryptocurrency service companies and exchanges, as well as the processing of customer transactions associated with cryptocurrencies, entered into force on 5 July. During the previous hearing, all motions for review of orders of the Reserve Bank was rejected. Despite the strict policy of Central Bank of India is considering creating a cryptocurrency counterpart rupees.