Indian crypto currency exchange takes Central Bank to court against recent ban

[palle11]

I think the articles are not specific on the subject matter and fact in issue. The case or court might order that status quo be maintained until an amendment of the article is completed. If this happens, the status quo will imply that business continues until the government is specific on the forbidding or not of bitcoin.

I know how slow these Indian courts are in passing down the judgement. This case will most probably go on for 10-15 years and by the time we get a verdict Bitcoin may not even exist.

But if bitcoin does not exist, other altcoin might take over because they are all cryptocurrency unless you are guessing cryptocurrency itself won't exist anymore.

[1714255883]

1714255883

[avikz]

Woah, it looks like they actually have a solid case against the banking ban. I mean, crypto isn't even illegal there so it was clearly an unreasonable decision in the first place. I'm looking forward to a favorable ruling.

The only thing that does actually concern me a bit, is the fact that because of it being a different category, banks for themselves could decide what to do and what not, so how will we fight a bank for ruling its own platform?

How will one open a case against a bank being totally in right when it comes to its own way of doing business? It's a clear sign that we should seriously rethink what banks stand for, and distance ourselves from them.

At first you have the central bank playing a role of importance, and then the banks as separate entities as well. Too many potentially negative variables involved to become a reliable partner for an exchange.

Banks are the service providers. The basic idea of banking is to get deposits from common people and lend that money to the businesses and earn the difference in interest. That's the basic business idea of a bank. With time, it has increased its reach and deepened the root in the society. But we all know nothing can be flawless. I strongly believe that Darwin's theory is also applicable in the business world. If a business model can't cope up with the changing demand of the market, it will be obsolete. Banks were the backbone of the financial system of the society since decades, because we didn't have much other options in hand. However, now we have crypto currency and we are not anymore dependent on the bank for moving our money. Banks are picking up unnecessary fight just to maintain their relevance in the financial system. Instead they should explore options to adopt the crypto currency for a better future and to stay within the competition.  

So banks can't decide things alone. They have to match with the demands of the time. The famous freedom fighter of India, Mahatma Gandhi once said "First they ignore you, then they laugh at you, then they fight you, then you win". History may repeat, you never know!

Here is the recent development on the case:
https://cointelegraph.com/news/india-delhi-high-court-seeks-response-from-central-bank-on-recent-crypto-ban-report-says

[jrrsparkles]

I know how slow these Indian courts are in passing down the judgement. This case will most probably go on for 10-15 years and by the time we get a verdict Bitcoin may not even exist.

So until that case time the rule will be followed or not?

I think if some case at the court then the rule issued by the government will be void so people can use it as long as the case is in pending right?

But don't think bitcoin will extinct in some years this is going to be the future currency.

[avikz]

Here is the latest development on the case:

Indian Supreme Court denied to issue interim injunction to RBI on the decision of crypto ban. The next hearing date is tomorrow, 17 May 2018.

News source: https://bcfocus.com/news/supreme-court-of-india-favors-rbi-restrictions-on-cryptocurrency-by-denying-interim-injunction/9039/

I encourage everyone to follow the twitter handle of Crypto Kanoon to get all latest development news on this case. They are a group of lawyers who have been engaged by the petitioners to handle this case.

Twitter profile: https://twitter.com/cryptokanoon

I will keep checking on the progresses made in this case and keep the thread updated!

[avikz]

The Supreme court of India has ordered to consolidate all petitions against the RBI regarding the crypto ban circular. Next hearing date is July 20, 2018. However, the court refuses to put stay on the circular and says it is still in force until the court comes to a conclusion. Here is the picture of some of the court cases filed by various petitioners.



There are many other pending cases which will be consolidated with the main petition.

Information and picture courtesy: CryptoKanoon Twitter handle.  

[Kemarit]

Here is the latest development on the case:

Indian Supreme Court denied to issue interim injunction to RBI on the decision of crypto ban. The next hearing date is tomorrow, 17 May 2018.

News source: https://bcfocus.com/news/supreme-court-of-india-favors-rbi-restrictions-on-cryptocurrency-by-denying-interim-injunction/9039/

I encourage everyone to follow the twitter handle of Crypto Kanoon to get all latest development news on this case. They are a group of lawyers who have been engaged by the petitioners to handle this case.

Twitter profile: https://twitter.com/cryptokanoon

I will keep checking on the progresses made in this case and keep the thread updated!

Thanks for the latest update mate. I just find it weird that Indian Supreme Court denied a injunction filed by the petitioner. Usually this is the last resort of petitioner to at least put a halt on RBI circulation but it looks like win for RBI despite efforts by the petitioner. So it going to be a long battle and I think this will really make or break the Indian crypto community. The result will have a dramatic impact, so right now we should just sit back and watch how everything unfolds but we all hope that the outcome will be favorable not just for the Indian community but everyone who have been involved in crypto globally.

[avikz]

Here is the latest development on the case:

Indian Supreme Court denied to issue interim injunction to RBI on the decision of crypto ban. The next hearing date is tomorrow, 17 May 2018.

News source: https://bcfocus.com/news/supreme-court-of-india-favors-rbi-restrictions-on-cryptocurrency-by-denying-interim-injunction/9039/

I encourage everyone to follow the twitter handle of Crypto Kanoon to get all latest development news on this case. They are a group of lawyers who have been engaged by the petitioners to handle this case.

Twitter profile: https://twitter.com/cryptokanoon

I will keep checking on the progresses made in this case and keep the thread updated!

Thanks for the latest update mate. I just find it weird that Indian Supreme Court denied a injunction filed by the petitioner. Usually this is the last resort of petitioner to at least put a halt on RBI circulation but it looks like win for RBI despite efforts by the petitioner. So it going to be a long battle and I think this will really make or break the Indian crypto community. The result will have a dramatic impact, so right now we should just sit back and watch how everything unfolds but we all hope that the outcome will be favorable not just for the Indian community but everyone who have been involved in crypto globally.

You are right Amit! Even I am surprised that the court has denied an interim injunction on the RBI directive. But you know, Indian courts are not run by tech geeks, so I doubt they will understand the positive impact of crypto currency on the economy. So we can expect very little from them. Sadly, our country is run by religious leaders, so you can expect new temples to be built in no time, but when it comes to technological advancements, they turn blind to overcome their own incapability to understand technical things. A lot depends on this case, really! Lets just hope for the best!

[marielbeckham]

At last, those changes many people were looking for happened.

[richardsNY]

Sadly, our country is run by religious leaders, so you can expect new temples to be built in no time, but when it comes to technological advancements, they turn blind to overcome their own incapability to understand technical things.

It's sad indeed that ignorance prevents certain countries from experiencing a massive economical boost, which in case of India is something they actually need to progress further. In some cases the cocky attitude of well developed countries is somewhat understandable, but you would expect countries with weaker economies to use everything in their advantage, but instead, they keep blocking progress, which is a damn shame. It just shows how little they care about allowing their country to move forward, where some times I even have the impression that they don't even want it to move forward. Not sure if India is one of them, but it wouldn't really surprise me.

A lot depends on this case, really! Lets just hope for the best!

There is nothing anymore to lose, but only to gain. If it turns out positively, it won't only be a victory for India, but for crypto in its entirety.

[Tigorss]

The announcement of this transaction ban makes the virtual currency exchange rate chaotic. Because the policy taken by the government is beyond the prediction of the observers. People who have a virtual currency are predicted to soon withdraw their virtual money before its value continues to fall.

[aso118]

Sadly, our country is run by religious leaders, so you can expect new temples to be built in no time, but when it comes to technological advancements, they turn blind to overcome their own incapability to understand technical things.

It's sad indeed that ignorance prevents certain countries from experiencing a massive economical boost, which in case of India is something they actually need to progress further. In some cases the cocky attitude of well developed countries is somewhat understandable, but you would expect countries with weaker economies to use everything in their advantage, but instead, they keep blocking progress, which is a damn shame. It just shows how little they care about allowing their country to move forward, where some times I even have the impression that they don't even want it to move forward. Not sure if India is one of them, but it wouldn't really surprise me.

The governments feel that it is a balancing act - there is a chance that Bitcoin could provide an economical boost, or it could be a useful tool for tax evaders. The government is taking the safe route and letting the central bank do the action of squeezing Bitcoin.

[avikz]

Another development in the case. Even though it is not actually a development but a sad case. MoneyTradeCoin, who was one of the beneficiaries of the court case filed against RBI circular of banning crypto currencies from the banking sector, has been busted by Mumbai Police in investigation of a ponzi fraud scheme of over 500 Cr.

The police reportedly said that, "The accused allegedly posed as representatives of the Union Finance Ministry and had also prepared fake identity cards to cheat people". Even though I personally want to remove the cheaters and fraudsters from the crypto ecosystem, this particular case made us weak because this company was one of the beneficiaries of the court case.

News link: https://www.ndtv.com/mumbai-news/thane-rs-500-crore-cryptocurrency-scam-busted-in-maharashtras-thane-over-25-000-cheated-1862825

[supermine]

Another development in the case. Even though it is not actually a development but a sad case. MoneyTradeCoin, who was one of the beneficiaries of the court case filed against RBI circular of banning crypto currencies from the banking sector, has been busted by Mumbai Police in investigation of a ponzi fraud scheme of over 500 Cr.

The police reportedly said that, "The accused allegedly posed as representatives of the Union Finance Ministry and had also prepared fake identity cards to cheat people". Even though I personally want to remove the cheaters and fraudsters from the crypto ecosystem, this particular case made us weak because this company was one of the beneficiaries of the court case.

News link: https://www.ndtv.com/mumbai-news/thane-rs-500-crore-cryptocurrency-scam-busted-in-maharashtras-thane-over-25-000-cheated-1862825

yes,this is sad and it can make them to think that all of us are scammer.

But I hope this case still have some other person to run by to get the victory on the crypto side because India is one of the biggest nation in Asia so other countries may follow their decision about the crypto currencies.On the pther side there were some news spreading that India is going to implement 18% taxes on crypto trading which is true?

[avikz]

Update post:

Internet And Mobile Association of India mentioned its petition before Supreme Court vacation bench on 22nd May. Urgency was cited because of 5th July deadline from RBI & the Supreme Court fixed the matter for hearing on 3rd July. Also Indian Crypto Regulatory framework almost prepared. Inter-disciplinary Committee to discuss a draft in the 1st week of July. Likely to wrap up the work by 15th July.



News source: https://twitter.com/cryptokanoon

[magneto]

Yeah, to me it's definitely an unfair thing for the central bank to do.

It is essentially using its power to wipe out any competitiveness that bitcoin has over its subsidiary banks, which is obviously in my opinion not ethical. It is also discriminating against all crypto exchanges in that regard, again, something that is probably not ethical either. Legally I don't know, but it certainly constitutes as discrimination against some form of business.

Not sure about whether or not this will end up as anything positive for the exchanges, as they probably have very little chance at winning any cases. But it's definitely good for themselves and for the bitcoin community there.

[avikz]

Yeah, to me it's definitely an unfair thing for the central bank to do.

It is essentially using its power to wipe out any competitiveness that bitcoin has over its subsidiary banks, which is obviously in my opinion not ethical. It is also discriminating against all crypto exchanges in that regard, again, something that is probably not ethical either. Legally I don't know, but it certainly constitutes as discrimination against some form of business.

Not sure about whether or not this will end up as anything positive for the exchanges, as they probably have very little chance at winning any cases. But it's definitely good for themselves and for the bitcoin community there.

I too agree with the statement that what central bank is doing, is not ethical. They are using their power to stop the crypto currency in India to maintain its significance in monetary system of India. However, the Supreme Court of India has pre-poned the hearing date and the case will be heard by them tomorrow, i.e. 3rd July. I will keep a track on the updates and share with the community here. Lets just hope for the best.

[avikz]

Latest Update on the case:

1. Supreme court refuses to put a stay order on the RBI directive.
2. Court directed RBI to provide reasons for the Banking Ban within next 7 days.
3. Next hearing date is 20th July, 2018.
4. Mr. Sandeep Goenka (Co-founder Zebpay), will move to the Supreme Court on 5th July as a separate petition to obtain stay order against RBI circular.

Still hopeful! Lets see how the event unfolds.

[buwaytress]

Latest Update on the case:

1. Supreme court refuses to put a stay order on the RBI directive.
2. Court directed RBI to provide reasons for the Banking Ban within next 7 days.
3. Next hearing date is 20th July, 2018.
4. Mr. Sandeep Goenka (Co-founder Zebpay), will move to the Supreme Court on 5th July as a separate petition to obtain stay order against RBI circular.

Still hopeful! Lets see how the event unfolds.

Thanks for the update, I wasn't expecting this at all. The Supreme Court's generally been quite objective about the law and ensuring private entities, or govt bodies, don't take singular approaches. That the bank actually admitted it had no grounds for the ban (because it never took up on the research it was supposed to do beforehand) I thought was the case closer.

I don't think the 20th hearing will change anything, but perhaps with regulations coming, they just want that to fall in place first.

[Tatzky]

This case is a good thing to win! Since crypto is a good thing to fight for, as one of the users I believe in its possibilities that it will help us progress for the better future and it goes well on what technology we have.

[timerland]

It's a good thing that these crypto exchanges are fighting back, imo.

They have the right to operate their business within India. Bitcoin isn't even illegal. There is no reason for the central bank to demand all the commercial banks of India to cease support of all bitcoin transactions all of a sudden.

2. Court directed RBI to provide reasons for the Banking Ban within next 7 days.

This will be an extremely interesting case to watch imo. If the court can stay unbiased and open minded, then there is a pretty good chance that we may see the regulation be repealed. However, I would still not be very optimistic at this stage.