Delhi High Court is now looking to put an end to the Reserve Bank of India’s (RBI) decision to bar banks from supporting cryptocurrency related transactions.
Delhi High Court has issued a notice to the Reserve Bank of India (RBI), the Union of India through Secretary, Ministry of Finance and Goods and Service Tax (GST) Council in response to an appeal filed to scrap their decision to ban banks from supporting cryptocurrency transactions. The bench of justices is looking forward to a reply by May 24, 2018.
The notice from the High Court is reportedly in response to a claim filed by the Kali Digital Eco-Systems, which was planning to launch its own cryptocurrency exchange, CoinRecoil, in August 2018.
Kali Digital Eco-Systems Pvt Ltd is building FIAT-to-Crypto platform for buying, selling and storing digital assets with the trade name of CoinRecoil. The company also plans to expand operations in Canada, Singapore, UAE, and Australia. They claim to have taken a hefty amount of investment to roll-out its exchange system Coin Recoil, But, the RBI’s notification jeopardized their launch plan as access to banking services was necessary for their business. This led them to file an official claim on April 16 in the Delhi High Court stating that the RBI’s orders were ‘arbitrary, unconstitutional and violative of the Constitution’ of India.
Kali Digital also included the Goods and Service Tax (GST) Council in its claim, because of its failure in not being able to put into action any regulation with regards to crypto transactions in the country. Kali Digital believe that it is this lack of regulation that has ‘increased the uncertainty over the treatment of such transactions and is adversely affecting the proposed business of the petitioner.’