Delhi High Court has issued a notice to Reserve Bank of India, The Union of India through Secretary, Ministry of Finance and the GST Council after admitting the petition filed by CoinRecoil cryptocurrency exchange.
In my previous post: "CoinRecoil—Indian Cryptocurrency Exchange Challenges RBI Circular in Delhi High Court," I had shared details on the petition filed by this upcoming Ahmedabad based cryptocurrency exchange in India on the 16th of April, 2018 against the RBI circular dated 6th of April 2018.
RBI had issued a circular forcing banks to withdraw their services rendered to any crypto exchange in the country. This will force exchanges in India to shut shop in 3 months time and leave investors with no option other than continue trading via p2p channels.
CoinRecoil.com had filed a writ petition on April 16, 2018, challenging the RBI circular, where it requested the 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, to be arbitrary, unconstitutional, and violative of Article 14 and Article 19(1)(g) of the Constitution of India, 1950 (“Constitution of India”)-YourStory.
Ms. Rashmi Deshpande, Associate partner, Khaitan & Co said the following on the matter:
“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”
Kali Digital Eco-Systems Pvt Ltd which owns CoinRecoil is in currently building a top trading portal where users can buy, sell cryptocurrencies with INR and also store these cryptocurrencies safely in their wallets. They are focused on building mobile and web apps towards this effect. It plans on starting operations with 10 cryptocurrencies and add more as per demand.
Delhi High Court bench comprising of Justice S Ravindra Bhat and Justice AK Chawla issued the notice to RBI, Union of India via Ministry of Finance and GST Council and sought its response on the matter. The next hearing in this case has been scheduled on the 24th of May, 2018.
I sincerely hope that RBI's attempt to thwart growth of cryptocurrency market is subdued by the court. I hope CoinRecoil succeeds in preventing the government from creating unnecessary nuisance and forces it to regulate this space instead. I'm following the developments closely and will post as I stumble upon any new important information.
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