The final verdict on crypto-currency scheduled on 11 September by Supreme Court

New Delhi/ Mumbai: The Reserve Bank of India (RBI) had declared a complete ban on the virtual Currency, Cryptocurrency transactions in India. Until then, the Supreme Court has postponed the next hearing on the petition is scheduled on 11th September. Accordingly, the court will announce its final verdict on this petition.

The RBI had banned cryptocurrency in India, clarifying that this currency cannot be allowed in India. The RBI had also recommended the investors to withdraw their investments at earliest from Bitcoin and other virtual currencies. Moreover, the Central Finance Ministry had cautioned earlier that investing in virtual currency may be a risky affair for the Indian investors. It had been forewarned that investing in this currency is as good as the ‘Ponzi Scheme’ scam. There had been a crackdown on the cryptocurrency exchanges across the country owing to the “Ponzi’ scam. The banks had also been cautioned by the RBI to stay away from dealings in the cryptocurrency.

In the meantime, a petition was filed by the Internet and Mobile Association of India in the Supreme Court against RBI’s decision. It has been announced in the petition that the ban on cryptocurrency is illegal and unconstitutional. The petition also claimed that the Cryptocurrency is based on the computer algorithm without any legal owner. In this petition, the RBI has claimed that the decision had been taken blindfolded, without conducting any study or survey.

During the previous hearing of this plea, the Supreme Court had refused to bring stay on the decision taken by the RBI. In addition to that, the Ministry of Information and Technology and the RBI had been urged to file an affidavit. Hearing of this petition had been carried out on Friday as well. Although the RBI has presented its pleadings in the court, the Securities and Exchange Board of India (SEBI) and the Finance Ministry had not come up with their pleadings. Therefore, it had been decided to postpone the final hearing to 11th September. It has been said that the Supreme Court has decided to announce its final verdict when both the parties have filed their responses until the next hearing.