The case against the Reserve Bank of India by the crypto exchanges of India in the Supreme Court on the ban of banking services was unexpectedly heard on Thursday. But, due to the absence of senior advocates of the parties, the case has been deferred to Feb 26th and has been listed as a top priority on that date. A two-judge Bench, led by Justice Rohinton F Nariman will start hearing final arguments from that date.
The case was scheduled for Jan 16th (Tuesday) but was getting postponed because of the other important matter listed before the court. As the matter was unexpected to reach, the senior advocates of the parties involved were not present and everyone caught by surprise. According to Twitter handle, CryptoKanoon:
“Now it will come for hearing on 26th Feb on ‘top of the list’ i.e., it will be at serial no. 1 on the Cause List.”
Now It will come for hearing on 26th Feb on "TOP OF THE LIST" i.e., It will be at serial no. 1 on the Cause List. @RohanDwaipayan
— Crypto Kanoon (@cryptokanoon) January 17, 2019
But, the lawyers of Reserve Bank of India was able to attend the Thursday’s hearing and strongly made the points before the bench. They said that the Reserve Bank of India had asked banks to stop providing banking services to crypto exchanges as it did not want it to spread like “contagion”.
RBI in its circular on April 6th has said:
“RBI prohibits entities regulated by it from providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies”.
Meanwhile, the draft of the cryptocurrency regulatory framework is also being prepared by the Secretary of the Department of Economic Affairs, Subhash Chandra Garg and has no specific timeline to come out with recommendations.
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