Published: Mon, April 23, 2018
Business | By Tara Barton

Reserve Bank circular on cryptocurrency challenged

Reserve Bank circular on cryptocurrency challenged

The Delhi High Court has issued notices to Reserve Bank of India (RBI), the Union Government and the GST Council on a plea challenging a recent circular of the RBI which withdrew banking support to Virtual Currency Exchanges like crypto currencies. The writ petition filed by Kali Digital claims that the decision of the Reserve Bank to deny services to crypto traders and exchanges violates various acts of the Indian constitution - Article 19 (1)(g) and Article 14 - which promise individuals a fair treatment among the eyes of law, as well as the freedom to practice any business or occupation of their choice. The petition states that it's the government that has empowered the RBI to take such drastic measures against exchanges, and the GST Council hasn't yet formulated therequisite rules for digital currencies, causing the present situation to arise.

Under the circular, these entities have been prohibited from "providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to purchase or sale of virtual currencies".

However, due to the April 6 circular issued by the RBI, the company claimed it will not be able to avail banking services, imperative for its business, to operate it, the petition has said.

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He said the medical expert has also opined that hymen of the victim was not found intact. Any appeal against the conviction can not take more than six months.

A Bench of Justice S. Ravindra Bhat and Justice A.K. Chawla posted the case for further hearing on May 24. "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", said Rashmi Deshpande, associate partner, Khaitan & Co, the advocate for the petitioner.

The circular issued by RBI on April 6 stated that entities regulated by the Reserve Bank should not deal in virtual currencies (VCs) or provide services for facilitating any person or entity in dealing with or settling VCs.

According to the company's press statement, CoinRecoil in its petition also included the Union of India and Goods and Service Tax Council responsible for the current turmoil in the cryptocurrency sector. The Ahmedabad-based exchange, which is scheduled to launch in August this year, is building FIAT-to-Crypto platform for buying, selling and storing digital assets. The company is planning to expand operations to Canada, Singapore, UAE, and Australia.

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