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Another crypto company challenges the blockade of Bitcoin banks in India

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A second Indian company has filed a legal challenge of a new central bank policy that is preventing financial institutions to provide cryptocurrency exchanges with banking services.

According to Business Standard, Flintstone Technologies Private Limited – MoneyTrade Coin cryptocurrency trading and storage platform operator – filed a plea in the Delhi High Court, arguing that the new policy of the Reserve Bank of India (RBI) "Arbitrary, unfair and unconstitutional".

"When we started our business, we wrote to all relevant departments and officials to ensure that our business model was in compliance with all statutory guidelines." But these arbitrary decisions by regulators and Some financial institutions have compromised our business interests, and today we have been guilty of our fault because of our fault, "said Flintstone director Amit Lakhanpal in the petition


The policy, first announced in a circular on April 6, prohibits institutions from offering bank accounts or other basic financial services to cryptocurrency exchanges and other companies that facilitate the negotiation of cryptocurrency. The RBI gave the banks three months to comply with the order before starting to take coercive measures.

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Several weeks later, the Dehli High Court agreed to hear a plea from Kali Digital Ecosystems, a start-up that had planned to launch a cryptocurrency swap in August 2018 and had already invested capital important in the project. to be set aside if the RBI's mandate takes effect.

Despite the banking blockade, there is a general consensus that the government will not push further the ban and will simply ban the cryptocurrency trade.

"There is a positive feeling in the industry that the government will not ban trade in cryptocurrencies, and even though formal banking channels can not be used, people can move to Crypto-crypto platforms, "Shivam Thakral, chief executive of the BuyUcoin cryptocurrency exchange, in a recent Reuters interview.

However, the ban will make it extremely difficult for companies to offer crypto-to-fiat trading pairs, so several exchanges of Indian cryptocurrencies have already launched crypto-crypto pairs before putting implementation of the ban.

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Featured image from Shutterstock.

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