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The Supreme Court (SC) of India has barred all high courts from filing petitions against the central bank’s (RBI) crypto-curbing circular from April. The court also is clubbing all pending petitions, to be transferred to the SC.
As cryptocurrency adopters, exchanges and advocacy groups move various high courts (HC) across the country in filing petitions against the RBI’s circular from April – effectively barring banks from processing all cryptocurrency purchases – the Supreme Court has, in a hearing on Thursday, ruled that HCs will no longer allow any petitions to be filed, domestic news resource Crypto Kanoon revealed.
Citing a Twitter post May 17 from a team of Indian lawyers involved in crypto regulatory analysis, Inc42 reports that the Supreme Court has refused to pause RBI’s crypto ban and has ruled that no further petitions against RBI’s ban can be filed in any High Court. The Supreme Court has also reportedly set the next hearing date for the existing petitions for July 20, 2018.
As reported previously, a number of cryptocurrency companies including the exchange operator Kali Digital and Flintstone Tech, a crypto trading and storage platform, moved the Delhi High Court against the RBI circular.
Earlier this month, four more exchanges across the country challenged the RBI circular and its constitutional validity with a writ petition.
Following Thursday’s developments, The Supreme Court has scheduled the next hearing on the matter on July 20 when it will hear related petitions filed at the court.
Last week, the Supreme Court declined to grant an injunction sought by 11 different crypto-related businesses against the RBI decision, with the new court case set for May 17. The legal team’s tweet adds, as of the Supreme Courts May 17 decision, any petitions already pending against the RBI’s anti-crypto circular will be transferred to the Supreme Court.
At the end of April, the High Court of Delhi also issued a notice to the RBI, the Ministry of Finance, and the Goods and Services Tax (GST) Council that alleged the decision to end crypto dealings violated the constitution.
Public outcry against the ban included an online petition for “Mak[ing] India at the forefront of Blockchain Applications Revolution” that has garnered over 44,000 signatures. American billionaire tech investor Tim Draperreferred to the ban as a “huge mistake” that could cause a brain drain in the country.
Despite its no tolerance stance toward decentralized cryptocurrencies, RBI is reportedly considering issuing its own central bank digital currency (CBDC). RBI has formed an inter-departmental group to investigate the potential advantages of a CBDC.