Indian Central Bank Argues Cryptos ‘Not Valid’ as Currency in Court Battle
The Reserve Bank of India on Wednesday insisted that the bitcoin could not be recognized in China before appearing at the Supreme Court.
The RBI said that current legislation in pre-emptive signage means that passwords can not be considered currency or money if they have had multiple exchanges with the central bank to prevent access to banking services five months ago.
"There has been a claim that the encrypted currency does not fit into real money, and RBI has been additionally submitted that, under current law, virtual currency such as Bitcoins is not considered" currency. "
In addition, according to CNN News No. 18, RBI continues to say that it can not be considered a "valid payment system" because the password is a peer-to-peer network and is not controlled by the service provider.
To qualify as a "valid currency", a bank must have the same or similar characteristics as "check, mail order and money order".
The next hearing on this case is scheduled for September 17th.
In April, the central bank ordered domestic banks and financial institutions to suspend the country's password exchange within three months.
Later that month, a Kali Digital Ecosystems (India) company, which was planning to establish an exchange called CoinRecoil in August, filed a petition with RBI.
According to the petition, Cali "tried to avoid proper correspondence, order or direction." The ban was "arbitrary and unconstitutional" and stated that the company could not start operations due to RBI restrictions.
The issue was then resolved by a petition from another exchange that tries to overturn the Supreme Court 's simultaneous hearing ban.
Since the issuance of the RBI Circular, exchangers have been forced to rely on password-to-transaction rupee-to-cryptographic trading services. However, if the court does not overturn the ban, the volume of transactions will decrease significantly and the company will face an uncertain future.
Court image through Shutterstock
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