The Indian Supreme Court will resume hearing arguments against the banking ban on cryptocurrencies next week following months of delays in the case. A date of October 15 has been slated for the resumption of the case which will see the Reserve Bank of India (RBI) challenged once more on its decision to ban banks from dealing with the proceeds of crypto-handling entities, which it did in July 2018. The eventual conclusion of the seminal case will see the ban either upheld or revoked for good, with no further appeals possible.
Court to Discuss RBI’s Intentions
The crypto ban was last discussed by the Supreme Court on August 21, who criticized the RBI for not responding to the crypto exchanges’ concerns about the ban in an appropriate way. In response to the RBI’s blanket ban, crypto-serving entities had argued that such a measure was excessive and had suggested a number of alternative approaches, such as applying the Money Laundering Act to institutions dealing with digital assets. The RBI was accused of simply forwarding the complaint on to the government rather than answering it, and a two-week deadline for a proper response was handed down. The bank reportedly complied with this order and submitted a detailed response, which will be the first item on the table in the upcoming hearing.
Indian Government on the Verge of Outright Ban
The resumption of the case comes at a time when the Indian government is deliberating a draft bill proposed by the working group on cryptocurrencies, formed of officials on both sides of the debate, which has met several times in the hopes of coming to a fair proposal. Given that the first publication from the group was a proposal entitled ‘Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019’, it seems that suggestions that India might be softening its stance on crypto were just wishful thinking.