The High Court of Delhi has issued a notice to the Reserve Bank of India (RBI) and other government bodies, that the decision to end dealing with cryptocurrency businesses is against the constitution, the Times of India reports.
Kali Digital Ecosystem is an Indian company which plans to open an exchange platform (CoinRecoil) in this Fall. However, due to the regulations issued by the RBI the company will not be able to avail itself of the banking services and by that it will be impossible to operate the business.
Creators of the CoinRecoil filled the petition last week, they think that the ban is “arbitrary and unconstitutional” and, as we can find in the petition: “On account of the Impugned Circular, the Petitioner will not be able to avail banking services to operate the cryptocurrency exchange ‘CoinRecoil.’ Such banking services are imperative for the business of the Petitioner. Consequently, the business of the Petitioner is stillborn on account of the Impugned Circular.”
Kali Digital Ecosystems considers RBI’s move as breaking the company’s constitutional right to open any business or practice any profession.
The Reserve Bank of India, in its circular, said that banks under its authority could no longer deal with cryptocurrency exchange platforms and other cryptocurrency related services.
The RBI took a strict stance on cryptos, warned cryptocurrency “users, holders and traders” that there is no company licensed by the RBI to work with cryptocurrencies.
The next hearing has been set for May 24 at the High Court.
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Last modified: April 23, 2018
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