RBI Vs Crypto: Setback for Crypto platforms as SC defers hearing till July

In a major setback to crypto platforms in India, Supreme Court has postponed the hearing of the case till the second week of July. The case was scheduled for hearing on Friday, however, it has been deferred at the request of the government’s counsel.

It came as a surprise and shocker for several crypto platforms' founders and stakeholders, who were waiting for the government's firm stand on cryptocurrency.

In April last year, RBI had ordered banks e-wallets, and payment gateway providers to withdraw support for cryptocurrency exchanges and other businesses dealing with it.

Following the ruling,  cryptocurrencies such as Bitcoin, Ethereum, and Litecoin witnessed a sharp fall down in prices,  whereas some cryptocurrency exchanges such as Zebpay Unocoin, WazirX, and Koinex had shifted to crypto-to-crypto trade or their base from India.

Earlier, the government had given four weeks to produce a report on the regulatory framework for cryptocurrency during the last hearing on February 25.

During the hearing, a two-judge bench of Justice Rohinton Fali Nariman and Justice Vineet Saran said that it is giving the govt the last opportunity to present its stand on crypto.

For the uninitiated, India’s cryptocurrency regulation is being drafted by an interministerial committee led by Subhash Chandra Garg, Secretary of the Department of Economic Affairs, Ministry of Finance.

The government had given the responsibility to RBI, Internet and Mobile Association of India (IAMAI) and Union of India,  which is yet to submit its report on the regulation.

Industry experts believe that the case on cryptocurrency ban lacks transparency as the government did not adequately invite recommendations or hold consultations with stakeholders.

According to Nischal Shetty, founder and CEO of WazirX, the committee did not have any representation from the industry and didn't understand the challenges or the innovation capabilities of the crypto industry.

The development was reported by ET.