In a petition filed by CoinRecoil, a cryptocurrency startup based at Ahmedabad under the aegis of Kali Digital Eco-Systems Pvt Ltd which is involved in building a new Fiat-to-Cryptocurrency platform has challenged Reserve Bank of India’s notice on cryptocurrencies. The firm also names the Union of India and the GST Council in the petition.
RBI’s recent notice which came out on 6th April 2018, forbids the Indian banks from giving any sort of support to all the cryptocurrency trading platforms in the country.
Opposing, RBI’s decision on virtual currencies, CoinRecoil moved to Hon’ble Delhi High Court and filed a petition on 16th April 2018. Along with RBI, CoinRecoil has also tagged in the Union of India, which is represented by the Secretary, Ministry of Finance as they have granted power for issuing the notice to the Reserve Bank and the GST Council for not being able to formulate guidelines and taxation laws with respect to crypto-assets.
In the petition, CoinRecoil requested Hon’ble High Court to issue an appropriate writ, order or direction quashing circular bearing reference number DBR.No.BP.BC.104/08.13.102/2017-18, dated April 6, 2018, issued by RBI to be arbitrary, unconstitutional and violative of Article 14 and Article 19(1)(g) of the Constitution of India, 1950 (“Constitution of India”).
Speaking on the issue, Ms. Rashmi Deshpande, Associate partner, Khaitan & Co. (legal counsellor of CoinRecoil) said
“The move by the RBI has put the burgeoning crypto currency sector in jeopardy and may affect the basic rights of such entities to carry on any trade. The circular appears to be arbitrary and unconstitutional since it does not give strong facts as to why RBI is against the business of cryptocurrencies. A logical and well thought arguments backed by solid facts are the primary requirements under the Constitution to put a stop to any business in India”
In the end, the good news for all the cryptocurrency investors in the country is that accepting the firm’s petition, Hon’ble Delhi High Court has now issued notices to all the three mentioned in the petition i.e. the Reserve Bank of India, The Union of India through Secretary, Ministry of Finance and GST Council.
Even though no judgement has been passed till now in anyone’s favour but we do hope that it comes out to be a positive one for thousands of cryptocurrency investors of the country.
We’ll be a keeping a close eye on the issue and bring you all the latest updates as the next hearing of the petition is scheduled on 24th May 2018.
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Note: It’s always better to do your own research before investing in the world of cryptocurrency.