A group of bitcoin traders has filed a writ petition in the Supreme Court challenging the Reserve Bank of India decision to block “essential services” like banking for cryptocurrency related businesses in India.
A writ petition is usually filed for the speedy review of an issue. The RBI’s circular mandates financial institutions to block services by July 5, 2018 putting crypto-related businesses in a spot. In this case, the writ is primarily to see if the government action is constitutionally sound.
The case has been listed for further hearing on May 17, 2018. One of the petitioners requesting anonymity, said
“Banking is an essential service. How can one deny access to an essential service when I’m not doing anything illegal? You have not declared VCs (virtual currencies) illegal in the country,”
The RBI on April 6 directed banks, e-wallets and payment gateway providers to withdraw support for cryptocurrency exchanges and other businesses dealing with virtual currencies in India.
The writ petition filed by a group of 11 different representatives from various crypto-related businesses challenges the constitutional validity of the RBI’s decision. The Supreme Court has issued notices to the RBI and Union of India after hearing the petition on May 11.
Last month, Ahmedabad-based crypto firm Kali Digital Eco Systems, which runs a cryptocurrency exchange platform named CoinRecoil, also approached the Delhi High Court filing a petition against the Reserve Bank of India (RBI), following which a an issue was sent to the RBI by the Delhi High Court.
The writ petition – Rajdeep Singh v Reserve Bank of India – is the fourth such petition against RBI for de-authorizing the banks from trading in cryptocurrencies . The Delhi High Court will hear on May 24 two petitions – Kali Digital Eco-systems and MoneyTrade Coin, both cryptocurrency exchanges who have opposed the RBI.
Ever since the cryptocurrency trading volume at the cryptocurrency exchanges in India has significantly dropped, only leaving with option for these cryptocurrency exchanges to move overseas to move cryptocurrency nations like Malta and Australia.
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