Indian Cryptocurrency Startup Challenges Central Bank Ban in Court Petition

2018/4/18 16:19:57

The petition has accused the RBI circular to banks as “arbitrary and unconstitutional” as well as discriminatory due to “differential treatment” given to the cryptocurrency startup. 

 

 


By Samburaj Das for CCN, Apr 18, 2018

 

Ahead of its planned launch of a cryptocurrency exchange., an Indian crypto startup has filed a writ petition challenging the central bank’s mandate of stopping banks from providing services to the sector.

 

Deeming the recent Reserve Bank of India (RBI) policy of prohibiting banks from dealing with cryptocurrency companies as “unconstitutional”, Kali Digital Ecosystems has filed a writ petition at the Delhi High Court seeking to quash the central bank’s order.

The company, a registered private limited, had planned to launch a cryptocurrency exchange called ‘Coin Recoil’ in August 2018, adding it has “already undertaken [a] substantial investment in this regard”, in the writ petition reviewed by CCN.

 

However, the RBI mandate that has forced banks to stop providing services to companies in the cryptocurrency sector means the company will not be able to launch or operate the exchange

 

An excerpt from the petition read:

 

On account of the Impugned Circular, the Petitioner will not be able to avail banking services in connection with operating the cryptocurrency exchange. In the absence of banking services, the Petitioner will not be able to conduct the proposed business.

 

As a result, the filed petition directly takes on the RBI, India’s Ministry of Finance (Department of Economic Affairs) and the Goods and Service Tax Council, blaming the tax authority of failing to introduce appropriate GST tax laws for the treatment of cryptocurrencies.

 

https://www.ccn.com/indian-crypto-exch ... nk-ban-in-court-petition/

 

Printer Friendly Page Send this Story to a Friend Create a PDF from the article