Starting today, July 20, all eyes of the Indian crypto community will be glued to the hearings, which are held in the Supreme court, about the tough measures of the Central Bank against kriptonyte.
Although a final decision could still take some time, trial to testify about the government’s position in relation to innovative industry and its conflict with the Reserve Bank of India (RBI) against use of Bitcoin and the activities of kryptonyte in General.
The beginning of the conflict
In April, RBI has directed to banks the order to close all accounts related to bitcoin by the first week of July. Shortly after this exchange, decided to challenge these actions in the Supreme court.
The RBI diktat, as noted by lawyers familiar with this case, in the first place was challenged by cryptocaryeae by two legal standards:
- article 19 (1) (g) of the Indian Constitution, which allows citizens to enjoy the right to engage in any professional activity, trade or business;
- article 14, which prohibits discrimination and provides for equal protection under the law for all.
At previous hearings in the primary court, the court rejected the claims. However, the situation for kriptonyte remains encouraging.
“Our hopes are that the hearings will be based on legislative acts, under which the RBI circular is unconstitutional and should be repealed,” said Rashmi Deshpande, a partner at law firm Khaitan & Co, representing Kali Digital Eco-Systems, the Indian crypto currency exchange that starts its work this year.
The crypto currency exchange vs RBI
This question considers chief justice Dipak Misra. The attorney General of India (AGI), K. K. was Venugopal also be present at the hearing, in accordance with the Directive of the court.
The court previously urged the exchange to interact with RBI and they are within the last two months call on the regulator to soften its stance. The crypto currency exchange stated that they are ready for greater scrutiny and regulation, if the ban is lifted.
However, at the beginning of this month, the Central Bank rejected all their proposals, citing the protection of investors ‘ interests, since cryptocurrency transactions are anonymous and scriptactive is no intrinsic value.
Now the government decision on compliance with the rules for the cryptocurrency sector is their last hope.
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