Delay in Hearing
The Supreme Court of India has once again put its gavel down, postponing a crucial hearing regarding the Reserve Bank of India’s (RBI) controversial ban on cryptocurrency services. What was initially set for October 16 has been pushed back to November 12, and due to some national holidays that might confuse even the most dedicated calendar keeper, it’s now slated for November 19.
RBI Under Fire
Back in August, the country’s apex court was less than thrilled with how the RBI handled its banning act. It criticized the central bank for sidestepping complaints from businesses and users alike. The court gave the RBI a two-week deadline to put on its thinking cap and justify its stance on cryptocurrencies, a task akin to explaining why one might wear socks with sandals.
History of the Ban
The notorious circular issued by the RBI in April 2018 prohibits financial institutions from providing services to anyone even remotely associated with cryptocurrencies. It is like being grounded from all forms of fun because one child didn’t do their homework. Adding some salt to the wound, the RBI has also hinted at the potential release of its own digital currency, making the situation even more perplexing.
Legal Challenges and Criticism
The High Court of Delhi didn’t mince words when it condemned the RBI’s decision. They claimed that the discontinuation of services to crypto businesses infringes on constitutional rights. Despite these challenges, the Supreme Court has upheld the RBI’s ban, as if trying to uphold the age-old tradition of “we know best.”
Potential Future Developments
In late April, whispers of a draft law called the Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019 began to circulate among government corridors. This initiative gained traction with inter-ministerial consultations. However, in a twist of irony, the RBI stated it had not been clued in on this draft. Imagine being the last person to find out about a surprise party!
The Government’s Stance
Fast forward to July, a government panel, in their infinite wisdom, suggested a complete ban on cryptocurrencies while recommending penalties for any crypto-related activity. It seems a Kafkaesque narrative is spiraling, leaving many investors and entrepreneurs biting their nails in uncertainty.
