Cryptocurrency in India is becoming a hot topic thanks to the upcoming crypto hearings in the country. India’s Supreme Court is set to listen to the final round of petitions against the country’s Bitcoin ban. The ban was put in place by the country’s central bank, the Reserve Bank of India (RBI). The hearing is set to happen today, September 25th, local news outlet The Financial Express reports.
Reserve Bank of India (RBI) Bitcoin Ban
In April, the RBI asked regulated entities to not get involved with businesses, firms, or individuals that traded cryptocurrency, imposing a virtual ban. At the time, interest in cryptocurrency in India had dropped compared to the previous year, but that seemed more due to a global drop in interest in digital currencies.
The RBI imposed its ban on cryptocurrencies in early July. The RBI ban was then challenged by the domestic cryptocurrency exchanges in the Supreme Court.
The original hearing on this matter was scheduled on September 11th, but due to the court’s backlog, the hearings were rescheduled—twice. On September 12th, the RBI maintained its views on the Bitcoin ban by telling the court that no legal system defines cryptocurrencies in their current format.
“The petitioner cannot seek to exercise the extraordinary jurisdiction of this Honorable Court to avail a right which they do not have,” the Indian central bank wrote in its affidavit. “The impugned circular and the impugned statement have been issued in a manner that is consistent with the powers conferred on the RBI by the law and the same are legal and valid.”
Cryptocurrency in India began to flourish last year, as the crypto market began rising at monumental rates after Bitcoin started breaking into mainstream media. In a month’s time, the total cryptocurrency market lost $500 billion. This scared regulators across the globe and many began implementing laws against the digital currencies.
This may be the case for the RBI, as it saw its residents take such an interest in the emerging currencies, only to see them fall drastically months later.
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