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Crypto Regulation Is In Its Final Stages, Says Indian Govt

News, Regulation | March 4, 2019 By:

The government of India has told the Indian Supreme Court that the crypto regulatory framework is in its final stage of deliberation.

Last week, the Supreme Court briefly heard the crypto case, filed by local crypto exchanges, against the crypto banking ban of the Reserve Bank of India (RBI), the country’s central bank. During the hearing, the court reportedly granted four weeks to local authorities to come up with crypto regulation policies. The two-judge bench of Justice Rohinton Fali Nariman and Justice Vineet Saran said that in case the government fails to do so, the court will come up with their judgement.

The crypto banking ban, which was released in April 2018, prohibits banks from providing services to any person or business that deal with cryptocurrencies. Indian crypto exchanges argued that the ban 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.

On November 2018, the government filed a counter-affidavit, stating that a finance ministry panel, set up in November 2017 and headed by secretary in the department of economic affairs Subhash Chandra Garg, could be ready with draft regulations in December. The release of the crypto regulation framework, however, has been delayed.

Vijay Pal Dalmia, the earliest petitioner in the case, said in a statement that the court has given one more and last opportunity to the Union of India to bring in a crypto policy in place. And, therefore, the Court refused to hear the other sides who were demanding the removal of the RBI circular.

“Upon hearing the counsel the court made the following order … Four weeks time is granted, as a last opportunity, to the Union of India to do the needful,” the court order said. “The crypto case will be listed for hearing after four weeks.”