The Indian supreme court resumed hearing the writ petitions against the banking restriction by the central bank, the Reserve Bank of India (RBI), on Wednesday. Many issues were discussed, ranging from the legality of the RBI action to the classification of crypto assets and how each country regulates them.
Supreme Court Resumes Hearing RBI Case
The Indian supreme court resumed hearing arguments on Wednesday against the banking restriction by the central bank, which it began hearing in-depth last week.
The hearing started with Ashim Sood, counsel for the Internet and Mobile Association of India (IAMAI), explaining to the court why banking support is necessary for businesses that deal in cryptocurrencies, Indian crypto news analysis platform Crypto Kanoon reported from the courtroom. Sood then argued against the legality of the RBI ban, citing the Banking Regulation Act and the RBI Act, emphasizing that the central bank did no research before issuing the ban. He further claimed that the RBI taking action for the sake of general consumer interest is beyond legality. According to Crypto Kanoon, the counsel asserted:
Banning or regulating something must be a legislative act, it is a power which cannot be exercised by way of delegation. A decision to ban or regulate should have come from the legislature instead of RBI.
Sood informed the court that, while the RBI does not see the need to define crypto assets, other countries’ regulators recognize three different kinds, citing a report by the UK’s Financial Conduct Authority, Crypto Kanoon continued to report. The counsel further explained that the RBI itself admitted that it does not have jurisdiction over the legality of cryptocurrency as it is neither a coin nor currency,