Since the time cryptocurrency came into the existence it has affected many people from different ways. The increasing price of cryptocurrency has made everyone excited to make an investment in it and make a huge a profit at the end of the day. It is legal in some of the countries while it is treated as illegal in other countries including India. As there is no any governing body to control the transaction of the cryptocurrency that’s why there is a lot of questions getting raised on the existence as well as on the use of cryptocurrency.
The fate of the cryptocurrency is at the stake until, and unless it does not get a clearance from the Reserve Bank of India as well as from the country’s top court. The central bank issued a notice with strict guidelines and told all the banks not to have any business relationship with any of the exchanges involved in the mining of the cryptocurrency. They have been instructed to close all the existing accounts from the first week of July. Starting at the end in India the virtual currency exchanges took the legal turn and approached the Supreme Court of India against the appealing order of RBI (Reserve Bank Of India).
Although the supreme court of India has not issued any guidance for the exchanges yet. The authority will submit a representation to the competent authority of RBI within two weeks time. It will be dealt in accordance with the law as per the order issued by the Chief Justice Dipak Misra. There are two other judges on the bench to take the decision which includes A M Khanwilkar and D Y Chandrachud.
On the other side, India’s digital currency system is in a condition of the uncertainty as the next hearing is on July 20. The time is just after the two weeks of the RBI deadline to close all the crypto-related bank account that is functioning in different banks. It means that ban on cryptocurrency will continue till the further notice. As the clearance is pending from the honorable supreme court the businesses are getting affected. The director of the Kali Digital Eco-system Kunal Barchha planned to launch its own cryptocurrency exchange in a couple of months but the matter has compelled him to wait for a long time. The company has also challenged the RBI’s diktat in the Delhi’s high court last month.
A Light Of Hope
After the order passed by the Supreme Court now, it completely depends on the Reserve Bank Of India. The major decisions were taken by RBI without taking the views of the virtual currency exchange. It was said by the Anirudh Rastogi who is the managing partner of the legal firm TRA law. The company has filed a petition for four exchanges in the Supreme Court.
Apart from this, they stated that there should not be a wide ban on the industry. Instead of applying a ban on the industry there should be strict rules to make sure that there are no any firms who violate the rules. Most of the exchanges follow the strict guidelines to make sure that there are no any illicit activities or any activities related to the money laundering. Most of the virtual currency exchange has taken the step to self-regulate the address as well as address the issue raised by the RBI. They are expecting that they will be able to see the positive points in the recommendations made by the firm.
Still, there are some other cryptocurrency firms who are still preparing for the scene where they don’t relief for any of the central bank’s order. There is a lot of firms who are planning to launch the system of a crypto-to-crypto trade. It will allow the clients to buy one cryptocurrency in exchange for another. It is done just to comply with the new rule made by RBI. There are some others who are planning to set up the offices in other countries of the globe while other exchanges rate looking for some other options.
Apart from this, the honorable Supreme Court has interrupted all the petitioners from filing any of the cases against RBI which will be related to the cryptocurrency in any of the high courts of India. All the cases related to the cryptocurrency will be combined together with the existing cases. A combined hearing will be done for all of them as per the central bank’s request.
There is a number of cases which has been filed against the cryptocurrency in the Calcutta high court, Delhi high court and other high courts of the country. So the RBI has asked the supreme court to merge all the cases in order to save time stated by the Dwaipayan Bhowmick, a lawyer who filed a public interest litigation in the supreme court in the month the of November.
The Supreme court of India has asked the attorney general of India (AGI) K K Venugopal who is the government’s chief legal advisor to be there on the next day of the hearing. “The union government is also a party in some of the cases that have been filed may be one of those reasons for calling the AGI (Attorney general of India).” The court thinks that it is a significant matter so it becomes important for the AGI to be present there.