Indian Court Issues Notice to Central Bank for Banning Crypto Transactions. In response to Reserve Bank of India’s (RBI) restriction on the banks to make transactions with exchanges dealing with crypto currencies, CoinRecoil had filed a writ petition against the orders. The move seems to turn fruitful as the court has issued notices to RBI, Ministry of Finance, GST council and The Union of India to justify the ban.
The high court of Delhi admitted the petition and announced the hearing of the case to be held on 24th May.
Read Also: Indian Central Bank Bans Crypto Transactions
Indian Crypto Stakeholders Actively Responded to Banning Crypto Transactions
The Central Bank of India had restricted all the subordinate financial institutions to have any kind of relations with the exchanges dealing in cryptocurrencies. In response, Indian crypto exchanges and relevant platforms decided to fight the battle on all fronts. One such entity started an online petition which got immense response by getting more than 17,000 digital signatures. The other exchange took the battle to the court.
According to Coinecoil the ban is unconstitutional and it violates the rights of the people given by the constitution under article 14 and 19. According to the articles, every person is equal before law and all the citizens have the right to choose any profession, practice any business or trade or carry any occupation of his choice.
Opinion of an Independent Law Expert
Rashmi Deshpande, a law expert and associate partner of a law firm Khaitan & Co says “The move by the RBI has put the burgeoning crypto currency 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. A 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.”
Indian Court Issues Notice to Central Bank for Banning Crypto Transactions
Crux of the Argument by the Expert Lawyer
Since Ashmi clearly called the RBI’s ban “arbitrary and unconstitutional” which is a clear indication that the law does not support the ban and it is likely that RBI might have to reverse its order considering court’s decision. He also highlighted that GST Council for cryptocurrencies could not set proper rules and regulations. He also said that RBI vaguely mentioned crypto currencies by calling it a technological innovation.
The Irony of the RBI’s Ban
It seems the central bank of India did it in a haste without clearly mentioning the reasons behind the band and vaguely describing the cryptocurrencies when the issued a circular on 18th April this month. Adding insult to injury, RBI also announced to stat its own cryptocurrency which clearly seems a conflict of interest.
The irony is so sharp here that the bank is adopting the same currency which he is putting the restrictions on and that too on the very same day. It has given rise to the speculations that the top financial institutions are insecure of this innovative technology and finding it hard to compete. They really have to pay a price to come equal to digital currencies in terms of transparency, immutability, faster executions of payments and low commission fees. The financial regulatory bodies should do some reforms and upgrade their systems to fight with cryptocurrencies rather than playing these tactics,