Another Company Challenges RBI Circular on Cryptocurrencies in High Court

In the recent wake of RBI banning its authorized banks an other financial institutions from dealing in cryptocurrencies in India, many companies dealing and trading in cryptocurrencies in India were left fuming. After Gujarat-based Kali Digital Ecosystems Private Limited filed a petition against RBI prohibiting from “providing any service in relation to virtual currencies” in the high court last month, now another company has come forward to make a same move against the RBI on the concerned issue.

Read more: Notice Issued to RBI By the Delhi High Court Following Kali Digital Ecosystem Petition

The company that filed the said petition is a Maharashtra based company, Flintstone Technologies Private Limited, that provides an online cryptocurrency digital wallet service for Bitcoin and Money Trade Coin and has pleaded for the withdrawal of the April 6 circular of the Reserve Bank of India (RBI), claiming that it is “arbitrary, unfair and unconstitutional“.

The petition also states that the Central Government has only been studying the effect of cryptocurrencies without banning them completely, therefore, its unfair on RBI’s part to come out with the circular to indirectly restrict the trade in virtual currencies.

To brief you about the RBI circular that banned the dealing in cryptocurrencies in India, the circular stated,

The entities regulated by the RBI are prohibited from “providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies“.

The plea requested has been listed for hearing before Justice Rajiv Shakdher. The plea puts the complaint forward that the RBI circular has “fenced” all the entities regulated by the Apex bank from providing services to any individual or business dealing in virtual currencies like cryptocurrencies.

The concept of cryptocurrencies in India has not been entertained very seriously. And no action of the central government has indicated that these cryptocurrencies carry any kind of risks.

This new article’s primary source has been inspired by a similar news article in The Hindu

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