All eyes in the Indian cryptocurrency ecosystem will be on the country’s top court starting today (July 20) as hearings in their case against the central bank’s harsh measures directed at them resume. While the verdict itself may take a while to be pronounced, the proceedings will clear the government’s stance towards the industry and the Reserve Bank of India’s (RBI) reservations against bitcoin and its ilk.
In April, the RBI had directed banks to wind down all cryptocurrency-related accounts by the first week of July. Soon after, the bourses challenged this in the supreme court.
The RBI’s diktat has been primarily challenged by the firms on two grounds, said lawyers familiar with the case. These are article 19(1) (g) of the Indian constitution, which allows citizens to enjoy the right to carry on any occupation, trade, or business; and article 14, which prohibits discrimination and mandates equal protection under the law for all.
In earlier hearings, the court refused interim relief to these exchanges. Yet, the industry remains hopeful.
“Our expectation is that the hearing will be on the basis of merit where we get to present the case on why the RBI circular is unconstitutional and should be quashed,” said Rashmi Deshpande, associate partner at Khaitan & Co, a law firm representing Kali Digital Eco-Systems, an Indian exchange planning to begin operations later this year. The matter is being heard by chief justice Dipak Misra along with justices AM Khanwilkar and DY Chandrachud. Read more from qz.com…
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