India’s Supreme Court To Hear All Cases Against RBI’s Crypto Ban

News, Regulation | May 23, 2018 By:

The Supreme Court of India has barred all high courts from accepting petitions relating to the central bank’s move to bar banks from dealing with crypto companies.

Last month, the Reserve Bank of India (RBI) ordered banks to refrain from providing any services to individuals or business entities dealing with or settling cryptocurrencies. Banks were given three months to unwind their business relationships with crypto-related companies.

A number of cryptocurrency companies, including Kali Digital Ecosystems, the operator of India-based crypto exchange CoinRecoil, and Flintstone Tech, a crypto trading and storage platform, filed a Writ Petition (Civil) no. 373 of 2018 under Article 32 of the Constitution challenging the constitutional validity of the central bank’s circular.

In its petition, Kali Digital Ecosystems said that the move to ban cryptocurrencies in India is unconstitutional, as it violates two Articles of the Indian constitution. Article 19(1)(g), which states that citizens enjoy the right to carry on any occupation, trade or business, and Article 14, which states that there should be no discrimination between equals. It also drew an analogy referring to reward points offered by airline companies and compared it with cryptocurrencies.

Last week, the Supreme Court of India decided to hear all matters relating to the RBI ban. High Courts will no longer entertain any more petitions and the already-pending petitions will be transferred to the Supreme Court. The SC has scheduled the next hearing on the matter on July 20.