Not so long ago Reserve Bank of India (RBI) caused a significant problem for cryptocurrency holders to trade and convert their assets. And now the market strikes back at RBI with the help of Delhi High court.
On April 22 the Delhi High court has issued a notice to the RBI after the petition has challenged the regulator's directive from April 6. RBI has ordered the banks to stop all business relationships with cryptocurrency-related companies by July 2018. This directive was a crushing blow for Indian crypto-community, with several exchanges closing down due to lack of banking support for their operations.
But Kali Digital Eco-Systems had plans to launch their own cryptocurrency exchange in August 2018. So they filed a petition to challenge RBI orders on basis of two articles of Indian Constitution – Article 19(1) (g) allows citizens the right to carry on nay occupation, trade or business, and Article 14 prohibits discrimination and mandates equal protection under the law for all.
The law firm representing the company's interests in the court has commented that the circular by the Reserve bank of India is unconstitutional since it doesn't present any significant evidence why the cryptocurrency business should be banned.
Also the company's petition also includes Indian government and Goods and Services Tax (GST) Council, because it was the government who gave power to the banking regulator to put forth such drastic measures, and GST Council's lack of solid rules for digital currencies. So, all three parties should be brought to justice for their actions.
The next hearing is planned for the May 24. And by that time several other cryptocurrency firms may decide to challenge RBI decision, if the rumors are to be believed.