Crypto Startup has Filed a Petition Against the Reserve Bank of India
Petition against Crypto ban
A startup in India has filed a complaint against the country’s top bank the Reserve Bank of India for its decisions to stop banks from engaging in crypto services. The firm Kali Digital Ecosystems which is planning to launch a crypto exchange filled the petition with the High Court of Delhi yesterday against the Central Bank, the Ministry of Finance and the Goods and Services Tax Council seeking an order from the court directing the three to squash the circular which they described as unconstitutional.
The company which plans to launch its exchange called CoinRecoil in August this year said in that petition that it had invested a lot to make their dream a reality. The company has said that as day’s approach the launch date they are unable to operate because of the restrictions on the banking services which were put in place by the Reserve Bank of India this month.
According to the filed petition:
“Because of the Impugned Circular the petitioner not able to avail banking services to operate the digital currency CoinRecoil. The banking services are very important for the business of the petitioner. More to that the business of the petitioner has become stillborn because of the Impugned Circular.”
The firm is angered by the actions of the RBI which it describes as unconstitutional since it violates the firm’s rights to practice and professions, business or trade. It has also argued that the Bank is discriminating the crypto sector without any justification. According to the firm RBIs lack of justification stems from their failure to adequately define the term cryptocurrency because of its ambiguity.
Kali Digital Ecosystems has also argued that the Goods and Services Tax Council has created uncertainty by not putting in pace crypto-specific tax laws something which has affected its business as a result. They want the court to direct the tax council to come up with specific tax guideline and regulations for the cryptocurrency sector.
The recent circular by the Reserve Bank of India had been preceded by two warnings about cryptocurrencies one which was issued in 2013 and the other one in 2017. Despite their hard stand about the digital currency the Reserve Bank of India has revealed in that circular that it was exploring the idea of launching and issuing its own digital currency.