India’s supreme court spent all day on Wednesday hearing extensive arguments from both the counsel representing crypto exchanges and the central bank, the Reserve Bank of India (RBI). The counsel for the central bank confirmed again that cryptocurrency is not banned in India, but still justifies the banking restrictions on the crypto industry.
Also read: Crypto vs RBI — 3 Days of Intense Supreme Court Hearings
All-Day Hearing at Supreme Court
The Supreme Court of India resumed hearing the crypto vs. RBI case on Wednesday. Local news and regulatory analysis platform Crypto Kanoon reported that Nakul Dewan, the counsel representing a number of crypto exchanges, opened his arguments by countering the RBI’s claim that crypto has no intrinsic value. He argued that by the same logic fiat currency also has no value since gold backing has been removed. The counsel also gave an overview of how money was developed. While agreeing that there are risks, he read out a report outlining alternative measures to banking restrictions, emphasizing that crypto is not banned in India.
Dewan proceeded to discuss the effects of the RBI ban, citing the government’s earlier statement that banning will reduce the ability of law enforcement agencies to monitor crypto activities. He explained to the judges how the crypto exchange business works, noting that the business is completely dependant on the banking channel. Dewan compared cryptocurrencies to airline miles which people could use and redeem for other services, adding that the RBI does not stop these similar arrangements. The court questioned if the two are really the same; the counsel insisted that both have the same economic nature.
Crypto, Medium of Exchange, RBI’s Power to Ban
Dewan told the court that “There are 2 things that a
