The Top Court of India has postponed a hearing that would consider the Reserve Bank of India’s (RBI) ban on providing services to cryptocurrency-related business.
In an Oct. 16 session on the ban that prohibits banks & financial institutions from providing digital currency-related services, the court shifted the date of the next hearing to Nov. 12. The date was further extended to Nov. 19 due to national holidays in India, which fall on the date initially set.
Reserve Bank of India criticized
In late August, the SC slammed the country’s central bank over its handling of the cryptocurrency business ban & ordered it to address complaints, giving the bank 2 weeks to justify it.
Originally issued in early Apr 2018, the Reserve Bank of India’s (RBI)’s crypto circular prohibits banks from providing services to any individual or business that deals with cryptocurrencies while adding that it was also exploring releasing its own cryptocurrency in the future.
Following the circular release, the HC of Delhi criticized it — stating that the Reserve Bank of India’s (RBI)’s decision to end dealings with crypto businesses violates the constitution. The SC has continued to uphold the Reserve Bank of India (RBI) ban even after hearing a number of petitions.
Complete ban on digital currencies
In late April, the Indian govt reportedly began inter-ministerial consultations on a draft law known as Banning of Cryptocurrencies & Regulation of Official Digital Currencies Bill 2019, having found support from a number of govt departments.
In June, the Reserve Bank of India (RBI) denied having any knowledge or involvement in the draft, claiming that it had no communication from the central govt about the proposed law & hadn't received a copy of the draft bill.
Later in July, a govt panel recommended that the govt ban cryptocurrencies & impose sanctions for any dealings involving crypto assets.
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