Supreme Court Critiques RBI’s Crypto Ban Handling: What’s Next for Indian Cryptocurrency?

RBI Under Fire Over Crypto Business Ban

The Supreme Court of India has taken a firm stance against the Reserve Bank of India (RBI) regarding its management of the cryptocurrency business ban. During a recent session, Justice Rohinton Fali Nariman did not mince words, expressing discontent with the RBI’s lackluster responses to industry complaints.

What Sparked the Controversy?

Back in July 2018, the RBI imposed a controversial ban preventing banks from providing services to crypto operators. This decision effectively curtailed the operations of cryptocurrency exchanges across the country, leaving many players in the industry scrambling for alternatives. Fast forward to August 2021, and the Supreme Court’s displeasure has begun to resonate louder, questioning the RBI’s accountability.

Judicial Demands: Accountability in Action

As the hearing progressed, Justice Nariman demanded concrete responses from the RBI concerning their previous representations to the government. He articulated that merely stating the issue was being forwarded to the government was insufficient. “This is not an answer,” he insisted, challenging the RBI’s approach. The RBI has now been given a deadline of two weeks to comprehensively address these representations—an unexpected twist in what many deemed an ongoing saga.

Unpredictable Turns in the Courtroom

Law devotees and crypto enthusiasts alike watched in astonishment as the case took a dramatic turn. With Justice Nariman’s push for the RBI to reconsider its banking ban, the courtroom became a stage for not just legal deliberation, but also a larger conversation about the direction of cryptocurrency in India. Crypto Kanoon reported on Twitter, detailing how the RBI ultimately agreed to this ultimatum.

The Bigger Picture: Is Crypto Dead in India?

This judicial clash comes amidst broader discussions within the Indian government that could lead towards making cryptocurrency illegal for citizens. Just recently, a government committee raised the alarm bells, recommending a ban on all tokens except for a government-approved digital rupee. Experts predict that such a move could obliterate an entire market, estimated to be around $13 billion. Who knew the currency of the future would spark a battle worthy of a courtroom drama?