Bitcoin Forum

Original article (https://journalducoin.com/regulation/inde-crypto-banque-centrale-inquiete/)

Translation (apologies for the possible mistakes here and there):

India: the central bank worried after being disapproved by the Supreme Court

Since April, the tribulations of the Indian Central Bank have made crypto-enthusiastic observers curious. While we learned that the ban on banks allowing crypto-exchanges to use the national currency was not based on any argument, or even a simple study, good news could now come from the Supreme Court and Indian Government.

The Reserve Bank of India (or RBI) is starting to get white hairs over its completely arbitrary (as groundless) ban, preventing cryptocurrency trading platforms from depositing and withdrawing into Indian rupees (INR).

As we mentioned at the end of July, the Indian Supreme Court was working with the government on a cryptocurrency bill, which is expected to be completed by the end of September. And we are almost there! Hence the concern of the RBI.

The RBI complains to the Supreme Court

According to CCN, the country's central bank reportedly stated:

"The disputed circular and the disputed statement do not violate the right to equality guaranteed by Article 14 or the right to trade and to the cases guaranteed by Article 19 of the Constitution (...) The petitioner [complainant] can not seek to exercise the extraordinary jurisdiction of this Honorable Court over a right they do not have. The disputed circular and the disputed statement were issued in a manner consistent with the powers conferred on the RBI by law and which are also legal and valid. "

Although the ban is "legal", it is also legal for companies and associations to file petitions with the Supreme Court to challenge decisions of government bodies such as the BIS (especially if the decision is completely draconian, given its damage to the freedom to undertake or invest).

The central bank is showing fangs to hide fear?

The RBI's aggressive approach to cryptos came back again in early September, when the central bank came to the Supreme Court to complain that the current legal system could not recognize Bitcoin as change.

Would the BRI redouble its efforts to save appearances, feeling the tide turn in its disfavor?

Meanwhile, the Securities and Exchange Board of India (SEBI) has sent representatives to Japan, the United Kingdom and Switzerland to study their regulatory frameworks for cryptocurrencies and trading platforms, according to CCN.

Could this be the end of the suspense for Indian exchanges and crypto-investors? We wish them in any case that this outright ban is eased, even if one can understand the concern of the BRI, which wishes to keep its exclusive privilege on the currencies in the country. The problem for the BRI is that it goes in the opposite direction.

Most likely, India will soon join countries in which the circulation of crypto currency will be fully allowed. In addition to its Reserve Bank, which is the central bank of India, I do not see any authorities or government there that are as aggressively opposed to the introduction of a crypto currency, like this bank. Earlier, the government created a special commission to study issues related to the crypto currency and in its conclusions it was stated that the crypto currency can be used in the country as a means of payment. Also, that experts exchanged experience in the field of crypto-currency, they went to Japan, Great Britain, which are generally friendly to the crypto-currency, is a good sign.

Fingers crossed. The Supreme Court just heard the last set of appeals yesterday. No timeline announced for a final decision yet.

Though it seems like a verdict which is entirely in favor of crypto seems like a far stretch considering the stance of authorities so far. Let's see. But at least, the banking ban will probably be lifted.

The Indian government wants to control the people of India by controlling their money and freedom to use what they want.  Just like they control gold and other PMs, they want to control bitcoin because it would give the people the freedom to avoid the paternalistic heavy hand of the politicians in India.

Nothing in the article quoted suggest this and even nothing close to it. What it does is just to make conjectures about recent happenings and what is expected to happen. The RBI wanted validation for their actions and that is why they have gone to the court to give them that because when decisions are made arbitrarily by a government organisation, the question that comes to mind is if they are legally empowered to make such decision and that is what the RBI is trying to do.

The final decision lies with the Supreme Court and I don't see an outright illegality pronouncement on the part of RBI coming from the court as it would mean a conflict between two government bodies that should provide support for each other especially if the case at hand can be argued to be a panacea to render every function of government irrelevant if not controlled and that is direction the argument will tilt towards. Of course policies change but government agencies would be able to make it function on their own terms.

The end? no! this may be the end of the crypto in India. In recent months the government of India has constantly attacked bitcoin and have no chance that we could believe that they would be friendly with bitcoin, just see the statements of several leaders of the government of India. I suggest people do not put a lot of hope that something positive will come out of the Indian government, at least people will avoid being disappointed.


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