India: Delhi High Court Wants Central Bank Response Regarding a Recent Crypto Ban
The Delhi high court was involved in a notice issue to Reserve Bank of India (RBI), the finance ministry and also the goods and services tax (GST) council and alleged that the decision taken by the RBI in ending dealings with the businesses related to cryptocurrencies is in violation of the constitution. This is in accordance with the Times of India which is a local news outlet on 22nd April.
Therefore, this notice by the high court is a response to a claim which was filed last week by the kali Digital cryptocurrency organization. Therefore, just moments after the RBI released a circular on 5th April which stated that they would not provide services to a business or an individual’s dealing with cryptocurrencies, an online petition meant to reverse the ban was therefore started. The petition, therefore, was able to get a total of 43,000 signatures by the time of the press.
Kali digital is involved in running the CoinRecoil Crypto exchange and will be launched in 2018 August. Therefore they filed a claim on 16th April which stated that the Circular by RBI violated the constitutional Articles 19 (1) (g) – which allows the citizens to the business, trade and occupational rights. Additionally, it was violating the Article 14 – prohibition of discrimination between equals. Therefore the Delhi’s high court notice which was issued by the judges A. K. Chawla and also S. Ravindra is meant to ask for a response from the parties involved. This should be done by 24th May.
Therefore, Kali digital believes that the decision by the RBI might prevent the CoinRecoil business operations which were done unconstitutionally.
According to the economic times;
“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 […] is stillborn.”
Therefore, Kali involved the GST council in their claim because they foresaw a failure to “frame appropriate regulation on crypto-currencies [sic] […] [that] increased the uncertainty over the treatment of such transactions and is adversely affecting the proposed business of the petitioner,” according to the Times of India.
Additionally, Tim Draper who is a tech investor had negative responses to the actions of RBI citing that the Indian government refusal in cryptocurrency recognition as a legal tender was “the stupidest thing.”