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Indian cryptocurrency start-up challenges central bank ban in court

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Prior to the planned launch of a cryptocurrency swap, an Indian crypto startup filed a petition challenging the central bank's decision. mandate to prevent banks from providing services to the sector.

Considering that the recent Reserve Bank of India (RBI) policy of banning banks from dealing with cryptocurrency companies is "unconstitutional", Kali Digital Ecosystems has filed a petition with the Delhi High Court to rescind the bank. Order from the central bank. ]

The company, a registered private company, had planned to launch a cryptocurrency swap called "Coin Recoil" in August 2018, adding that it had "already undertaken [a] a substantial investment in this regard" , in the petition revised by CCN

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

An excerpt from the petition reads as follows:

Due to the disputed Circular, the Applicant will not be able to benefit from banking services in connection with the operation of the cryptocurrency exchange. In the absence of banking services, the claimant will not be able to conduct the proposed case.

Therefore, the lawsuit filed against the RBI, the Ministry of Finance of India and the Goods and Services Tax Council, blames the tax administration for not introducing laws appropriate tax on GST cryptocurrencies.

In addition, the petition accused the RBI's circular to the banks of being "arbitrary and unconstitutional" and discriminatory because of the "differential treatment" granted at the start of cryptocurrency.

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Moreover, the ambiguity inherent in RBI's definition of "cryptocurrency" – there is no clear definition of what constitutes cryptocurrency – could also mean that the air miles could be wrongly considered under this term.

As reported earlier this month, the RBI crackdown has seen trading volumes across popular trading platforms plummet in recent weeks. Conversely, exchanges through peer-to-peer platforms like LocalBitcoins have been boosted.

The RBI circular ordering the banking blockade comes after three opinions urging the public to be wary of investments in cryptocurrency. The SCC reported the first warning in December 2013, followed by two separate notices – essentially a new version of the 2013 warning – in 2017.

Image from Shutterstock.

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