India’s supreme court has slammed the country’s central bank over its handling of a cryptocurrency business ban and ordered it to address complaints.
Judge: RBI has not properly responded to representation
In the latest session of an ongoing hearing into the actions of the Reserve Bank of India (RBI) on Aug. 21, the Court ruled officials had not appropriately responded to concerns from the cryptocurrency industry over its actions.
The RBI forbade banks servicing crypto operators such as exchanges in July 2018, effectively ending the ability for such platforms to continue operating in India.
On Wednesday, the move came in for severe criticism from the Supreme Court’s Justice Rohinton Fali Nariman.
As summarized by advisory resource Crypto Kanoon, present at the hearing, Nariman gave the RBI just two weeks to justify its actions.
“Now justice Nariman questions RBI why you have not properly responded to the representation. You just said that we are forwarding to Govt. Angrily says this is not an answer,” one update on Twitter reads.
RBI agrees to 2-Week deadline
Discussing the final outcome of the hearing, which is now over, Crypto Kanoon summarized:
“Case takes the most unlredictable turn. Justice Nariman directs that RBI must respond to the representation in the manner appropriate. Offers to defer the case for 2 weeks as part heard, let the answer come on reconsideration of banking ban by RBI. RBI has agreed.”
The case comes at the same time as the Indian government considers making cryptocurrency illegal for all Indians. In July, a government committee recommended Delhi move to ban all tokens except an official digital version of the rupee.
Subsequently, as CryptoX reported, an expert estimated the state would lose a market worth around $13 billion if it signed the ban into law.