CRYPTO V/S RBI arguments on August 8

Compilation of all arguments in Supreme Court of India on August 8 shared by Crypto Kanoon

  • Matter reached for hearing today and is being heard by the Court.
  • In the beginning Counsel for RBI requested for adjournment but the Court showed its disagreement and directed the parties to start with their arguments.

Hopefully no ‘tareekh pe tareekh’ anymore.

  • The court resumed and arguments started on RBI banking ban. Counsel for exchanges is arguing.
  • Provisions of Reserve Bank of India Act and Banking Regulation Act are being analysed in order to know whether RBI has power to issue such circular or not.
  • RBI circular is being analysed in the Court.counsel for exchanges is arguing that RBI restricting banks from providing services to Crypto is a colorable exercise in the guise of consumer interest.
  • It can exercise power in public interest only to the extent as provided under law such as interest of depositors,borrowers etc
  • RBI in its cautionaries gave impression as if some authorization was required for exchanges to run, however no such authorization was required under law.
  • If Crypto was a commodity then SEBI could have stepped in but RBI has nothing to do with it.
  • Cryptos are not the means using which laws are violated in fact there are many ways.
  • This way can also be regulated.RBI is only a delegate of power which cannot exercise same powers as parliament which has a direct impact on legitimate businesses.
  • Court asked Why cant you work without bank?
    Counsel answered Any settlement taking place will be converted into cash. users are owners of bitcoin kept in my wallet, when they wish to sell, they sell their bitcoin through my bank account.
  • Court asked show us from your pleadings that any of the company/ business has got shut down due to banking ban effect since this averment is compulsory for making case under article 19(1)gCounsel showed from page 39 of their writ petition that they have suffered losses also showed page 199 stating that exchange has lost users due to banking ban.
  • Manner in which other countries have treated Cryptos has been discussed.
    Justice Nariman Asked for a detailed chart on that.
  • Technology underlying the Blockchain and Crypto is being explained to the Hon’ble judges.
  • Counsel argues that Cryptos must not be equated to Sovereign Currency i.e., rupee etc.
  • One is commodity, other is currency.
  • In support, judgement of Brazilian Supreme Court is being read. Court hearing ends here.
  • Case will resume on coming Wednesday 14th August 2019.