India: The Supreme Court ruled that the RBI cryptocurrency ban is unconstitutional
The Indian Supreme Court has rejected a circular issued by the Central Bank (RBI), which prohibits commercial banks from trading in cryptocurrency.
Supreme Court of India has struck off Reserve Bank of India’s (RBI) banking ban against #Crypto. The Court held that RBI Circular dated 6th April 2018 is unconstitutional.
— Crypto Kanoon (@cryptokanoon) March 4, 2020
India rejected the central bank’s ban on cryptocurrency
Today, the Supreme Court ruled that the central bank’s April 6, 2018 circular was unconstitutional. So far, the judges of the Supreme Court have agreed with the recommendations of cryptocurrency exchanges and startups on the rejection of the ban.
Mohammed Danish, an Indian lawyer and co-founder of Crypto Kanoon at the hearing today, said a copy of the 200-300-page verdict would be posted on the court’s website shortly soonest.
However, not everyone is satisfied with this decision.
Deputy editor-in-chief of Indian media Today, Chaiti Narula, made some criticisms of the decision.
Crypto has won in India 🇮🇳
We won! #IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) March 4, 2020
In April 2018, RBI banned banks from providing services to cryptocurrency exchanges. This ban caused the exchanges to file a complaint with the Supreme Court. And after a lengthy procedure, the court ruled that the RBI’s circular was unconstitutional.
The case between RBI and the Indian Internet and Mobile Association (IAMAI) was held today with the participation of a jury of three judges R F Nariman, Aniruddha Bose, and V Ramasubramanian.
IAMAI is a not-for-profit organization whose primary mission is to make appeals on behalf of clients in the internet industry, shareholders, and investors. Members of this association include Yahoo, Apple, eBay, Unocoin, and Etsy.
After winning the first match against RBI, the cryptocurrency community in this country still has a resistance obstacle that is the bill to grant cryptocurrencies to be submitted to parliament last winter. If approved, this would be a significant disadvantage for the crypto industry.
The Supreme Court is trying a separate case, in which the agency will decide the regulations for digital money. It seems that this new ruling may undermine the idea of issuing strict rules.
Meanwhile, India’s central bank is still working on creating a national digital currency even as it intensifies repression of anonymous tools such as Bitcoin, citing the risk of money laundering and other risks. Other illegal activities.
Opponents have argued that the central bank has not been given the authority to enact a ban on cryptocurrency transactions, and its directives have not been adequately studied.
Germany recognizes Bitcoin as a legal, financial instrument, but not as a currency
The German government’s financial watchdog has acknowledged Bitcoin as a legitimate financial instrument, helping to clarify the legal status of cryptocurrencies in the country’s financial system.
The Federal Financial Supervisory Authority (BaFin) of Germany has officially confirmed that cryptocurrencies are a financial tool, taking the currency a step further on the way recognized by governments. This makes it easier for users to access the cryptocurrency and will facilitate the creation of several businesses around the Bitcoin product.
According to the translation from BaFin’s press release, published on March 2, cryptocurrencies are now classified as “digital representations of value” with the following characteristics:
- Not issued or guaranteed by any central bank or public authority.
- Do not possess a legal status to be considered monetary.
- It can be used by individuals or organizations/businesses as a means of exchange or payment.
- For investment purposes.
- It can be sent, stored, and transacted online.
The above document also notes that “cryptocurrencies” will not be confused with many other cryptocurrencies, because cryptocurrencies – such as video game currency – have specific rules for them.
This classification is based on definitions made by regulatory agencies around the world. BaFin also clarified that, previously, cryptocurrencies did not belong to any already recognized category in Germany.
The European Union has tightened anti-money laundering regulations for cryptocurrencies, and the 28 member countries of the Union are now required to comply with AMLD’s fifth Anti-Money Laundering Directive starting to take effect in early 2020.
By the new legal regulations of financial regulators in the UK, the Netherlands and Austria, exchanges, and cryptocurrency managers must register with the local regulatory authority and follow the procedures anti-money laundering as well as KYC to be able to manage the identity of transaction customers while also being responsible for reporting suspicious activities.
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