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

[avikz]

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 If the court can stay unbiased and open minded, then there is a pretty good chance that we may see the regulation be repealed.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.

Crypto exchanges are extremely worried about their business and they are even considering to take their business outside the jurisdiction of India if the court case fails for them. At this point I sincerely wish if my country was a little less corrupted. Here the court runs as per the government's wish. With the current government busy in creating religious chaos, I expect very little from them. Especially when the court denied any interim injunction. We can only pray to GOD at this point. I don't see much hope left in this case, really!

[avikz]

New update on the case (20 July 2018):

On the last hearing the Supreme Court of India ordered the regulatory authorities like Finance Ministry and SEBI etc. to present their view on the case. However, few of them have not yet provided any view yet. So the court ordered them to provide their view within next 4 weeks and the final judgement will be passed on 11 September 2018. If these authorities fail to provide their views within the prescribed timeline, court will still go ahead and hear the argument on 11 September 2018 before passing a final judgement.

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

[Rustamm]

The hearing of this case was postponed the other day by the Supreme Court of India on September 11. On this day, the final decision on several motions regarding the prohibition by the Reserve Bank of the country of its subordinated banks to have any financial relations with the crypto-currency exchanges about the crypto currency should be announced on this day. Let's see, while the chances of success of such a referral are available.

[HiringYou]

I have read that crypto currency exchanges in India are not working.A temporary stay has been imposed on them.A hearing was held on 5th july in order to decide whether this stay will continue or not but the decision was against these exchanges. Next hearing was held on 20th july in order to decide whether these exchanges will work or not but no decision was taken regarding this.A next date is given  i.e. 11-09- 2018 on which the decision will be  made.Now we just have to wait for the decision.

[avikz]

I have read that crypto currency exchanges in India are not working.A temporary stay has been imposed on them.A hearing was held on 5th july in order to decide whether this stay will continue or not but the decision was against these exchanges. Next hearing was held on 20th july in order to decide whether these exchanges will work or not but no decision was taken regarding this.A next date is given  i.e. 11-09- 2018 on which the decision will be  made.Now we just have to wait for the decision.

The crypto exchanges are working. The ban is on the bank account so you can't sell your coins and withdraw that money to your bank account. However, there is no issues in coin to coin exchange and everything is working fine. That is because the RBI ban is in effect currently as the Supreme Count has denied to issue a stay order on the RBI circular.

However, the p2p market is still going strong through localbitcoins or localethereum platform. Just make sure to trade within a smaller limit and don't suddenly transact big money which doesn't match with your usual holding pattern. 

[BitHodler]

However, the p2p market is still going strong through localbitcoins or localethereum platform. Just make sure to trade within a smaller limit and don't suddenly transact big money which doesn't match with your usual holding pattern. 

Are there physical limits in place when it comes to LocalBitcoins? I have seen people from the US complain about sudden AML/KYC procedures while their use pattern hasn't changed at all.

It seems to be a problem mainly focusing on users from the US considering that I don't see many other users complain about similar issues. It could be a sign that the US is trying to crack down on local economies.

LocalBitcoins was to go-to source for people avoiding exchanges, but has become somewhat of a target for authorities. The only positive side to this is that it will fuel development of decentralized platforms.

[Oliveir]

If there is a good thing that would benefit the mass and people would continue to have benefited from it then there is really a reason to fight it for! Voice it out! They should just make a resolution or regulation to avoid people from making a crime

[avikz]

Update post: 11th September 2018

The matter was initially listed to be heard by the court today but due to some other lengthy matter, the crypto petitions are adjourned for tomorrow, i.e. 12th September 2018.

In the meantime, I encourage you all to see the video in the below mentioned tweet to know more about the status of the case where the advocate talks about the case,

https://twitter.com/cryptokanoon/status/1039554726772269057?s=19

I will keep the thread updated with tomorrow's outcome!

Most likely, the matter will again be delayed until November because the court is still waiting for answers from various Indian regulatory authorities.

[ningrumxxi]

Great news. I thought that Indians will not do something about the ban and they will just let these banks dominate their behavior and decision of banning crypto transactions.

That Article 19 of India's institution looks favorable to the complainant/s.

steps taken from banks in India are only a strategy, by banning crypto currency transactions, seeing the development of the crypto currency which is very fast and has the potential to replace all existing currencies in the world, so the bank wants to take advantage of it, the bank may want regulate the rotation of the currency and try to take advantage of the buying and selling process.

[avikz]

Update post: 13 September 2018

The court could not hear the crypto case due to some other lengthy matter. The crypto case is likely to be heard on Tuesday i.e 18 September 2018. That's a common practice in India.

News source:
https://twitter.com/cryptokanoon/status/1040157507111530496?s=19

[Netnox]

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.

Couldn't put it any better. One of my Indian friends had a dispute regarding property ownership and the legal fight went on for more than two decades. Finally, both the parties reached an agreement. Else it would have carried on for many more years.

[avikz]

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.

Couldn't put it any better. One of my Indian friends had a dispute regarding property ownership and the legal fight went on for more than two decades. Finally, both the parties reached an agreement. Else it would have carried on for many more years.

That's true! Especially cases related to property and land ownership goes of for decades. However, I don't think the same fate awaits for the crypto case. Because a big Association IAMAI has filed the petition. IAMAI stands for "Internet and Mobile association of India". So expecting this case will have shorter tenure. But due to the complexity of the matter, it will not be easy for a court to decide.

In the meantime, Reserve Bank of India had filed a Counter affidavit (reply) to the court as per the directive given to them. It seems like they have done a  lot of homework this time. However they have raised a few interesting questions this time. See the video below,

https://www.youtube.com/watch?v=78sZwZdxBzs

The language of this video is Hindi. I am still waiting for an English version. 

[Gadhoh]

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.

I am still confused about the legality of bitcoin in India, there is some information that India is trying to adopt bitcoin because the circulation of bitcoin there is already very large and there have even been some big investors coming from there, but suddenly the news came that the government was banning bitcoin and banning the company I use big bitcoin, and what I know is that my first opinion was that India had legalized bitcoin and tried to regulate it because India had already felt for themselves how the benefits of its people who actually use bitcoin have violated taxation.

[avikz]

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.

I am still confused about the legality of bitcoin in India, there is some information that India is trying to adopt bitcoin because the circulation of bitcoin there is already very large and there have even been some big investors coming from there, but suddenly the news came that the government was banning bitcoin and banning the company I use big bitcoin, and what I know is that my first opinion was that India had legalized bitcoin and tried to regulate it because India had already felt for themselves how the benefits of its people who actually use bitcoin have violated taxation.

You seem to have confusion between blockchain technology and cryptocurrency.  You need to understand that both are different things. Blockchain is a technology and bitcoin is a successful use case of blockchain technology.

India had never decided to adopt bitcoin, it was blockchain. Indian power ministry had decided to explore blockchain in the power sector and ordered research and development activity for the same.

Also, India haven't yet ordered a complete ban on cryptos. They have just announced that cryptos can't be used as a legal tender in India. P2p transactions are still alive and thriving in India. I hope this help you to understand the difference now!

[sambel90129]

It seems that India is turning conservative against technological revolution, yes its very unconstitutional to just cut relations between banks and crypto industry without a proper forum. Cryptocurrency and blockchain is not against the state or anything, its a breakthrough and technological phenomena that will replace the current outdated system that we used everyday.

the Indian government began to follow in the footsteps of developed countries, they began to see great potential in bitcoin, maybe India in the future began to use krypto to replace conventional currencies, India might realize there had been a big revolution in world currencies, we see developments that would, maybe very good.