At the beginning of April, the Reserve Bank of India (RBI) released a circular informing all banks and companies that are registered with them to suspend all cryptocurrency dealings in the next three months, sending the cryptocurrency community of the country into a tizzy.
Many online petitions and protests were and continue to be staged, amidst such outrage against the RBI’s crypto stance, a fiat-to-crypto company CoinRecoil filed a petition challenging the circular, demanding a withdrawal of it by the RBI in consensus with the Ministry of Finance, GST Council and the Union of India.
The petition was accepted by the Delhi High Court and has since issued a notice to the RBI. The petition was filed earlier in April and CoinRecoil is being represented by one of the leading law firms in the country, Khaitan, and Co.
This is what the associate partner at Khaitan and Co had to say on the matter, as reported by inc42, “The move by the RBI has put the burgeoning cryptocurrency 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. 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.”
The reasoning behind naming the Union of India, GST Council and the Ministry Finance as co-respondents to the complaint is no short of genius. As the very fact that the RBI could release a statement as it did on 6th of April, means that the other financial counterparts did not have sufficient and effective laws regarding cryptocurrencies to include them into the industry.
The next hearing for this case is scheduled to be on the 24th of May. The way this case swings could very well be the do or die decider for the cryptocurrency market in the country.
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