Currently, the India Supreme Court is clamoring for the Modi Government to make clear its exact stand on Cryptocurrencies. They have given the government only one month to pass their verdict.
In a case that has been on going for a while now, the Supreme Court reached its ultimatum. The case was basically concerning the country’s digital currency exchange and that of the government.
The judges involved in the case are Justice Vineet Saran and Justice Rohinton Fall Nariman. They have simultaneously made statements that they are simply granting the government time as their last chance to make its stand by the next hearing.
This next hearing will be taking place either the first week of April 2019 or the last week of March 2019. The panel was led by the Economic Affairs Secretary of India. His name is Subhash Chandra Garg.
Since the year 2017, the panel has taken its time to work on the draft regulations for computerized currencies. However, there has been no specific time frame for the drafting of the rules.
What Caused The Issue?
It should be worthy to note that without a clearly defined policy, the ecosystem of Cryptocurrency is dwindling.
Since June 2018, the Reserve Bank of India also known as RBI has barred banks from taking businesses linked to Cryptocurrency merchants. Additionally, this has dealt a major blow to lots of businesses.
This affected trading volumes and Cryptocurrency exchanges dragged both the government and its central bank to court.
Meaning Of The ruling
According to Anirudh Rastogi; from the New Delhi firm Ikigai Law; the ruling does not necessarily imply that the regulation of Cryptocurrency will be set up within a month. It is his firm that is representing the digital currency exchanges.
Also, he has stated that the ruling only means that the government will firm up its exact position on the issue. From there, the government will present its position to the court involved in the ongoing issue.
Meanwhile, the exact thing the court has clearly ordered the government to do will be transparent when the order is completed by a day or two days.
Judging from what the government had to say in December, they had not positioned any exact deadline to firm up Cryptocurrency regulations.
According to the Minister of State for Finance, Pon Radhakrishnan, the government is taking caution in devising a technical solution that will be feasible. And so, it is complex to directly give a particular time frame to give out transparent recommendations.
This was exactly what the Minister of State for Finance had to share with Lok Sabha. Basically, Lok Sabha is the lower house parliament.
However, with the recent ultimatum given via the Supreme Court, the government will have no choice than to hustle swiftly.
Earlier, the Supreme Court had fixed the hearing for the 25th of February majorly for both Cryptocurrency exchanges and RBI. This was done for them to present their diverse views on restrictions placed by the RBI.
To Wrap It Up
Judging from the hearing, the Supreme Court has clearly refused to consider all arguments that are against the banking ban removal. No one knows what caused this change on the part of the court.
However, since Cryptocurrency assets present difficult technical problems, it could be possible that the judges want to hear the government out first before it takes on the constitutional circular of the RBI.