Home News Legal Breaking! Supreme Court Directs Union of India to File Counter Affidavit on...

Breaking! Supreme Court Directs Union of India to File Counter Affidavit on Cryptocurrency Regulation

October 25, 2018 15:54
|
Supreme Court

The Indian crypto-community has been waiting for this day since September 11.

The Supreme Court, after listening to one of the cryptocurrency matter for sometime  asked the Union of India to file a counter affidavit in response to Advocate Dwaipayan Bhowmick’s petition to either regulate or ban bitcoin.

Advocate Bhowmick told Crypto-News India, “Today, the matter reached Supreme Court. After listening to the arguments the quorum comprising Justices Rohinton Fali Nariman and Navin Sinha asked the Union of India to file a counter affidavit 2 weeks from now. The affidavit should comprise of information from the cryptocurrency committee which is being headed by the Union of India and what stance they will adopt towards cryptocurrencies.”

The committee in question, has been studying cryptocurrencies and deciding whether to regulate it. To clarify, this petition is separate from other petitions on cryptocurrencies that have been filed by other parties.

The RBI, in September had filed an affidavit stating that cryptocurrencies such as  bitcoins could not be recognized under the current legal regime as virtual currencies are neither money nor currency, can’t even be considered as a valid payment system, as per a report by News18. They cannot be considered as a valid payment system.

To recap: In April, the RBI had instructed all banks and individuals affiliated with it, to terminate working relationship with cryptocurrency exchanges based out of India. Following which, many exchanges (including a fraudulent one) had filed a petition against the central bank. Apart from exchanges, the IAMAI had also filed a petition against the central bank on the same matter.

It should be noted that, a writ petition filed by one Satyam Tiwari against the RBI on August 3 was disposed of by the apex court. The court had noted that same issue is under consideration in WP 373/2018 (Joint Petition by 4 exchanges including, Koinex), Crypto Kanoon tweeted last month.

Liked what you read? Join us on Telegram

LEAVE A REPLY

Please enter your comment!
Please enter your name here