Indian Central Bank Argues Cryptos ‘Not Validas Currency in Court Battle

The Reserve Bank of India made the argument on Wednesday at the Supreme Court that bitcoin cannot be recognized in the country.

In a case that has been brought by a number of exchanges against the Indian central bank for blocking their access to banking services five months ago, the RBI argued via an affidavit that current legislation means that cryptos cannot be considered either currency or money.

The RBI stated:

It is submitted that crypto-currencies fall short of being true currencies. It is further submitted that RBI does not consider virtual currencies such as Bitcoins as ‘currencyunder the extant laws. There are no enabling provisions under the extant law to treat Bitcoin as currency.

Thêm nữa, according to a report from CNN’s News 18, the RBI continued to say that, as cryptos are peer-to-peer networks and not controlled by a service provider, “They can’t even be considered as a valid payment system.

In order to be recognized as avalid currencythe bank said instruments shouldpossess identical or similar characteristics of cheques, postal orders and money orders.

The next hearing on the case is scheduled for September 17, the news source indicates.

Trở lại vào tháng tư, the central bank ordered domestic banks and financial institutions to stop working with the country’s crypto exchanges within three months.

Cuối tháng đó, a petition was lodged against the RBI by Kali Digital Ecosystems, an Indian firm that had been planning to launch an exchange called CoinRecoil in August.

According to the text of the petition, Kali was seekingan appropriate writ, order or direction quashing the [RBI’s] circular.It stated that the ban isarbitrary and unconstitutionaland that the company is unable to begin operating due to the RBI’s restrictions.

The issue has since addressed by petitions from other exchanges seeking to overturn the ban, which the Supreme Court is hearing at the same time.

Since the RBI circular was issued, exchanges have been forced to drop rupee-to-crypto trading services, relying instead on crypt-to-crypto trading. Tuy nhiên, trading volumes have taken a big drop and the companies face an uncertain future unless the court rules to overturn the ban.

Indian Supreme Court image via Shutterstock

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nguồn: Coindesk