RBI Claims Crypto-Circular Doesn’t Violate Any Constitutional Rights
RBI files an affidavit with the Supreme Court of India in response to the petitions against a crypto-banking ban. RBI further argues saying that the petitioners have shown no reasonable grounds for the Supreme Court involvement in their crypto-ban decisions. After several arguments and court hearings, the matter is still unclear, and the hearing is set on 25th September 2018.
Know More About The Petitions
Ever since the RBI’s circular imposed the ban on banks dealing with cryptocurrencies many petitions have been filed. These petitions state that the alleges circular violates:
- Article 19 (1) (g) Right to practice any profession or to carry on any occupation, trade or business to all citizens
- Article 14 Right to Equality of the Indian Constitution
Arguing on the petitions by Internet And Mobile Association of India (IAMAI) and other petitions, RBI challenges the ban. RBI says It is not maintainable either in law or on facts and, hence, liable to dismiss as such. To all the petitions filed, including the one filed by IAMAI RBI responds by saying,
The impugned circular statement neither violate the right to equality guaranteed under Article 14. Or the right to trade and business guaranteed under Article 19 of the Constitution.
It further argues by stating, “there is no statutory right, much less an infringed one, available to the petitioner to open and maintain bank accounts to trade, invest or deal in virtual currencies (VCs).” The RBI further disregards the involvement of SC by saying
The petitioner cannot exercise extraordinary jurisdiction of this Hon’ble Court to avail right which they don’t have.
RBI Defends April 6th Circular
RBI adheres to its April 6th circular by saying that it is in accordance to the three explanations issued on December 24, 2013, February 1, 2017, and December 5, 2017, in regards to cryptocurrencies. They have also set up crypto regulations admitting the importance and their presence for trading.
Further defending the circular RBI states,
The impugned circular statement issuance by a law that is consistent with powers on the RBI are liable and valid.
Unlike a currency definition as something that can be an exchange medium, a store of value and a unit of account, VCs, given their volatility, lack of inherent value and steady adoption, fulfill none of these criteria. Their value merely drives from transaction parties willing to pay a specific amount for the VCs, says the RBI.
In a nutshell, RBI is like the comical villains trying to ban the superheroes, like in the movie Incredibles. IAMAI and other petitioners are against it, we need the heroes to be free and the hero world (World of Cryptocurrencies and Blockchain) to be unregulated.
Anyway, the world leaders need to take a seat and discuss the issues and regulate it to an extent. As it only hurts the intention and the innovators or enthusiasts.