India: Timeline on Crypto's fight against RBI crypto ban

[Baofeng]

April 6, 2018 - RBI issued a circular wherein entities they regulated are prohibited ""providing any service in relation to virtual currencies including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies". - source ¹



April 17, 2018 - Kali Digital petitions India Supreme Court (ISC) against RBI’s crypto ban source²

They challenge the circular based on two grounds:

(i)Under Article 19(1) (g) of the Indian constitution, which allows citizens to enjoy the right to carry on any occupation, trade, or business;

(ii)and Article 14, which prohibits discrimination and mandates equal protection under the law for all.

April 21, 2018 - Indian Supreme Court Orders RBI to Answer Crypto Exchanges, New Date 2018

"After hearing arguments we are of the view that detailed representations by exchanges … have not been answered point by point, therefore RBI [is] to reply [to] them within 2 weeks." source ³

May 17, 2018 - ISC Denies interim injunction against RBI restrictions

May 30, 2018 - ISC directs petitioners to submit representation to the RBI against the circular, and to tell RBI their grievances and how they plan to address RBI’s grievances

(i)Petitioner’s representation gave detailed suggestions, including, ‘If you feel that they are being used for illicit activities, impose KYC in regulations on us, make us a regulated entity under the PMLA.’

(ii)RBI’s reply wasn’t comprehensive. source ⁴

July 22, 2019 - Report of the Committee to propose specific actions to be taken in relation to Virtual Currencies source ⁵

August 21, 2019 - ISC ordered RBI to reconsider its position, deferring the case for two weeks. source ⁶



September 17, 2019 - RBI has responded to IAMAI as per the SC's Order and now we are preparing an appropriate counter-response.

October 3, 2019 - Hearing was postponed and re-schedule on October 15, 2019

October 15, 2019 - Another postponement, will re-adjourned on November 19, 2019

November 19, 2019 - Senior counsel of RBI requested to postponed the hearing and re-adjourned on January 14, 2020

January 14-16, 2020 - 3 days of deliberations, Mr. Ashim Sood, represents Internet and Mobile Association of India, an advocate of crypto in India.

January 22-24, 2020 -  Resumed hearing the case. Coindcx, Coindelta , Koinexindia and ThroughBit (4 Indian exchange) open ups its arguments against RBI circular.

January 28, 2020 - Resumed hearing with Mr. Ashim Sood, presenting arguments.

March 4, 2020  - ISC lifts the bans, allows crypto trading and quashes RBI circular.




Picture of India's new age crypto super-heroes.

[pooya87]

i still think calling it a "ban" is a great exaggeration. a ban usually refers to when the government prevents people from using something like the case with Bangladesh where it is indeed illegal to use bitcoin. but there is no such laws in India, it has been legal to use and own bitcoin you just couldn't use the centralized services called "banks" to buy/sell it!

[Ozero]

Earlier it was reported that on March 4, that is, yesterday, the Supreme Court of India was to make its decision on this lawsuit. I thought that they would write here exactly what decision this court made. I think that there will be no sensation anyway, because for this it is necessary to adopt the necessary laws, and not judicial decisions. Lawmakers in India continue to remain silent. At the same time, given the general positive attitude towards cryptocurrency on the part of states, I do not think that the appealed decision of the Reserve Bank of India will be recognized as legitimate.

[Yaunfitda]

Good timeline, pretty much almost 2 years in the making, I still remember that there is also a change org petition in relations to the RBI ban.

(1) Legalize Cryptocurrency trading in India
(2) Freedom For Crypto;
(3) Make India at the forefront of Blockchain Applications revolution;

All's well that ends well. Now, its time for India to show what they can bring to crypto sphere, whether adoption of bitcoin, or making a blockchain related projects.

[Kemarit]

This is just the beginning, yes it was a hard fought battle challenging RBI blanket ban on banks dealing with cryptos. Reading on that twitter account, there are a lot of good arguments presented by both sides, but I guess the Supreme Court really weigh on how crypto are going to affect their country and I think those judges that crypto is the future because it had challenge the financial systems globally and proven its worth for the past ten years. Let's see if this translates to a somewhat "bullish" sentiments this week.

[Artemis3]

In the words of a famous Indian:

First they ignore you, then they laugh at you, then they fight you, then you win. -- Mahatma Gandhi.

Yes, it might not have been a wholesale "ban", but it wasn't good. Now things are looking better. Any "obstacles" to bitcoin just prevents wealth creation, it is an opportunity deprivation to put obstacles to it. Those countries that adopt it have a competitive advantage their rivals don't.

The implications for this are too important to let the ignorant politicians to handle. Thankfully your justice system is not just for decoration, like it is in my country... Well at least in this case, some justice was served.

Now lets hope they don't over "regulate" things, which would slowdown the wealth creation process (The size of the State is somehow always in counter-position to wealth creation, maybe its only a giant parasite?).

[akhjob]

OP, Nice timeline.

But looks like the fight is not over yet and the Reserve Bank of India is planning to file a review petition on the Supreme Court's ruling.
More Info here - https://www.theblockcrypto.com/post/57987/indias-central-bank-plans-to-file-a-review-petition-on-supreme-courts-crypto-ruling-report

[Baofeng]

OP, Nice timeline.

But looks like the fight is not over yet and the Reserve Bank of India is planning to file a review petition on the Supreme Court's ruling.
More Info here - https://www.theblockcrypto.com/post/57987/indias-central-bank-plans-to-file-a-review-petition-on-supreme-courts-crypto-ruling-report

Thanks, yeah, it looks like RBI is not going down easy and will fight it out.

So I guess I needed to update the timeline again if there is something concrete and new with their petition. Chances are slim for them though, and we all do hope that the judgement is final.

[pakhitheboss]

A two year long battle and a great victory to cherish. I still remeber how banks were blackmailing individual user of closing their accounts for doing transaction with exchanges. Some private banks went ahead and closed account without any notification.

There were so much panic and uncertainties among the Indian crypto community in 2018.