Live updates from court courtesy of CryptoKanoon:
Lawyers representing IAMAI and exchanges are arguing:
-> counsel for exchanges is arguing that RBI restricting banks from providing services to Crypto is a colorable exercise in the guise of consumer interest. It can exercise power in public interest only to the extent as provided under law such as interest of depositors,borrowers etc
-> RBI is its cautionaries gave impression as if some authorization was required for exchanges to run, however no such authorization was required under law.
- > If Crypto was a commodity then SEBI could have stepped in but RBI has nothing to do with it.
- > RBI is only a delegatee of power which cannot exercise same powers as parliament which has a direct impact on legitimate businesses.
-> Court asked Why cant you work without bank?
Counsel answered Any settlement taking place will be converted into cash. users r owners of bitcoin kept in my wallet, when they wish to sell, they sell their bitcoin through my bank account.
-> Court asked show us from your pleadings that any of the company/ business has got shut down due to banking ban effect since this averment is compulsory for making case under article 19(1)g
Counsel showed from page 39 of their writ petition that they have suffered losses.
also showed page 199 stating that exchange has lost users due to banking ban.
-> Manner in which other countries have treated Cryptos has been discussed. Justice Nariman Asked for a detailed chart on that.
-> Technology underlying the Blockchain and Crypto is being explained to the Hon'ble judges.
- > Counsel argues that Cryptos must not be equated to Sovereign Currency i.e., rupee etc.
One is commodity, other is currency.
In support, judgement of Brazilian Supreme Court is being read.
Court hearing ends here. Case will resume on coming Wednesday 14th August 2019.
Thank you!
