Home / Crypto Currency / India’s Supreme Court Urged to Rule on Cryptocurrencies

India’s Supreme Court Urged to Rule on Cryptocurrencies


Advertisement

Join our community of 10 000 traders on Hacked.com for just $39 per month.

Mohammed Danish is a lawyer practicing at the Delhi High Court in India. You can direct your queries to the Author at [email protected]

Since 2013, the RBI has been issuing cautionary advice in the public interest. However, a sense of relief was embedded in all the cautions for the investors that, if at all, the hammer of Government will only fall on the miscreants who will flout the law of the land.

Ministry of Finance had also constituted an inter-disciplinary committee was also appointed to examine the regulatory framework with regard to Virtual Currencies. The committee was comprised of representatives from different Government departments inter alia, stock exchange board of India and Reserve Bank of India. The act of appointing an expert committee also indicated that the Government is willing to rein in the cryptocurrencies in the best interest of all the participants.

In the mid of 2017, an unprecedented surge was seen in the advent of ICO’s and new crypto exchanges and the price of the bitcoin had ascended the ladder of an unusual value (above $21,000.00). As a result of an increase in price and huge profits earned by the investors caused the bitcoin to become the topic of every tongue. With the increased popularity of bitcoin, fraud and crimes involving the same also increased and then began the era of knocking the doors of Supreme Court by Public Spirited persons.

The first Public Interest Litigation (PIL) was brought before the Supreme Court by Mr. Vijay Pal Dalmia Advocate, by way of Writ Petition filed under Article 32 of the Constitution seeking a ban on sale and purchase of cryptocurrencies including bitcoin, litecoin etc in India. The said Writ was ordered by Apex Court to be treated as a representation and Reserve Bank of India was directed to examine the same and communicate its decision on the representation within a specified time. However, the RBI instead of clarifying its stance on the issue evasively responded while giving information about the appointment of Inter-Disciplinary Committee by the Ministry of Finance.

Thereafter, the same Petitioner filed another PIL seeking that cryptocurrencies and all the platforms including mobile applications, websites etc. sued for sale and purchase of crypto, be declared as illegal. Just after this, another PIL was filed in which the difficulties faced by the investors were agitated and it was prayed to the Apex Court that the Crypto should either be regulated by a legal framework or it should be completely banned.

The aforesaid PILs are pending adjudication before the Supreme Court since November 2017 and surprisingly the Government has not disclosed its stance before the Supreme Court whether it is in favor or against the Crypto ecosystem.

In a recent development, the Internet and Mobile Association of India has also filed an impleadment application in the ongoing litigation praying that since the outcome of the decision of Supreme Court will have a bearing on its interest, therefore, it should also be allowed to advance its stance in the issue. There is strong likelihood that the new RBI notification severing fiat-crypto ties will be challenged in the Court of Law. So now the parties with competing interests are face-to-face before the Supreme Court, a gavel stroke of which will decide the future of cryptocurrencies in India.

The atmosphere on the social media indicates that the Crypto community is hopeful of a respite from the Supreme Court. And in other words of John McAfee, “You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust”.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement
Read more

Check Also

Bitcoin Price Watch: Currency Briefly Falls Below the $6,000 Mark Before Recovering

At press time, the father of cryptocurrency is trading for just over $6,000. This is about $200 less than where it stood during yesterday’s afternoon hours. The coin is continuing to fall deeper and deeper into red territory, though this price is an improvement over where it stood during the early morning, when it fell below $6,000. The currency is now just a few steps above its lowest point of the year, which it hit on June 18 with a price of just over $5,770. The cryptocurrency market cap has shed approximately $21 billion off its back in the last 24 hours, and it appears the crypto space is being targeted by massive sell-offs. In other words, bitcoin is not alone in its present state. The currency is struggling to maintain its position on the financial ladder, yet it’s still doing relatively well in comparison with entities like Ethereum, which has fallen below the $300 mark – the lowest it’s been all year. Also, Ripple – the third-largest cryptocurrency by market cap – has also fallen by roughly 14 percent. Charles Hayter, CEO of CryptoCompare, is blaming the SEC’s decision to postpone any action towards the bitcoin ETF submitted by VanEck SolidX. “This has snowballed negative investor sentiment,” he explains. Some, however, are refusing to give in to all the hype and say that bitcoin still has the power to unite cryptocurrencies across the board. One Reddit user for example, recently posted his thoughts regarding the recent sell-off. “Am I selling now?” he asks defiantly. “No way. Why not? Because bitcoin is not broken. Nothing bad happened to bitcoin. It still works. Will there be bumps along the way? What do you think we’re experiencing now? Some of [you]get to decide: are you going to be a coward or not?” Hayter further commented that the bitcoin arena is only going through ups and downs because it is still a developing market; that it holds a strong position in the financial infrastructure, but needs more time to mature: “Bitcoin and its ilk are opening up a new arena of finance. The hope and speculation that gripped the market last year has been eroded in the last few months. That said, under the hood, a lot of work has been moving ahead to form the routes to incumbent institutions and to provide them with the tools, mechanisms and assurance they need for entering the cryptocurrency space. It’s only a matter of time before the crypto sphere becomes part of the mainstream, but it needs to do a lot of growing up in the process.” Bitcoin Charts by TradingView

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.