SC refuses to stay RBI virtual currency order


Financial Express
FE Bureau 
 May 18, 2018 
Apex court allows cryptocurrency exchanges, their shareholders, traders and other individuals to present their cases to the RBI within two weeks.

The regulator has given banks a deadline of July 6 to adhere to the new rule.
The Supreme Court on Thursday refused to stay the Reserve Bank of India’s decision that mandated banks, e-wallets, and payment gateway providers to withdraw support for cryptocurrency exchanges and other businesses dealing with virtual currencies. However, it allowed cryptocurrency exchanges, their shareholders, traders and other individuals to present their cases within two weeks to the RBI, which will look into the issue in accordance with the law.

Various PILs, including the one filed by a group of 11different representatives from various crypto-related businesses, have challenged the RBI’s April 6 circular that declared cryptocurrency-related businesses like virtual currencies, crypto assets, etc illegal in India. The regulator has given banks a deadline of July 6 to adhere to the new rule.

https://wtf2.forkcdn.com/www/delivery/lg.php?bannerid=0&campaignid=0&zoneid=5184&loc=https%3A%2F%2Fwww.financialexpress.com%2Feconomy%2Fsc-refuses-to-stay-rbi-virtual-currency-order%2F1172230%2F&cb=a190154fcf
A bench led by Chief Justice Dipak Misra while transferring to itself various other similar petitions pending before the high courts of Delhi and Calcutta also stayed proceedings before the HCs. It also restrained all the HCs from entertaining any other petition against the RBI circular. It also sought the attorney general’s assistance in the matter. Last week, it had sought response from the RBI and the Centre.

The Reserve Bank, through senior counsel Shyam Divan, told the bench that there is a need to have a proper regulatory mechanism in place and for this the finance ministry’s Department of Economic Affairs had constituted an interdisciplinary committee last year to examine virtual currencies and came up with a regulatory framework.

Alleging infringement on their right to trade that is guaranteed in the Constitution, the petition said the RBI lacks the authority to classify crypto assets as legal or illegal assets, but is seeking indirect, colourable means to outlaw crypto assets, which as per the finance ministry do not qualify as ‘legal tender’ in India.

“Even while there is no law in India which declared virtual currencies/crypto assets/ crypto currency and the trade or usage of the same as illegal, the impugned circular has acted basing itself on such a presumption of illegality, the petition filed by the group led by Rajdeep Singh said.

The group challenging the constitutional validity of the RBI’s decision also has cryptocurrency exchanges, their shareholders and traders as other petitioners. While the circular does not make cryptocurrency trading or usage illegal, it makes it impossible for exchanges to offer such services, the petitions said.
The Internet and Mobile Association of India (IAMAI) this week moved the apex court seeking a stay on the RBI’s decision to not allow banks to provide services to cryptocurrency trading platforms. However, the matter is yet to come up for hearing.

Reference:-https://www.financialexpress.com/economy/sc-refuses-to-stay-rbi-virtual-currency-order/1172230/


Comments

Post a Comment

Popular posts from this blog

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017 arrested his
Read more

J&K Cricket Board Scam: Chargesheet Filed Against Farooq Abdullah, 3 Others By CBI

OUTLOOK July 16, 2018 The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah and three others. The CBI on Monday filed a chargesheet against former Jammu and Kashmir chief minister Farooq Abdullah and three others in a special court in Srinagar in connection with alleged irregularities and misappropriation of funds in the Jammu and Kashmir Cricket Association. After the fall of the Peoples Democratic Party (PDP) and the BJP government, this is the biggest development that has taken place in the state. The National Conference has not reacted to the chargesheet so far. The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah, the then president of JKCA, Md Saleem Khan - the then general secretary, Ahsan Ahmad Mirza - the then treasuer and Bashir Ahmad Misgar, an executive in the J&K Bank. The BCCI gave Rs 112 crore t
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav
Read more