The High Court of Delhi has reportedly sought an answer from the Reserve Bank of India (RBI), the Ministry of Finance, and the Goods and Services Tax (GST) Council on the appeal which challenged the RBI’s decision to ban cryptocurrency related businesses.
The challenge came from an Indian startup, Kali Digital, who filed a petition to the Dehli High Court deeming the ban “unconstitutional” on the grounds under Articles 14 and 19 of the Constitution of India. The petition has currently gained over 43,000 signatures and was filed by the startup in response to RBI tightening regulations which included the affirmation that the central bank would conclude providing services to any cryptocurrency-related business.
According to local news outlet Times of India, judicial authorities S Ravindra Bhat and A K Chawla issued a notice to the RBI, the ministry of finance and the GST seeking their reply by 24th May in response to the petition.
As well as looking to quash the strict regulations of the circular, which the petition calls “arbitrary, unconstitutional and violative of the Constitution” the appeal also seeks guidance to the GST Council to “frame appropriate regulation on crypto-currencies.”
Kali Digital has contended that a lack of regulations on cryptocurrencies has “increased the uncertainty over treatment of such transactions and is adversely affecting the proposed business of the petitioner“. The company is nervous about the ban and the subsequent negative implications it will have on the launch of the crypto-currency exchange – named CoinRecoil – they are looking to release in August.
Tim Draper – an American venture capital investor – weighed in on the situation, slating the RBI’s circular in an interview. He claims that if he had the chance, he would tell the Narendra Modi, the prime minister of India, that RBI’s cryptocurrency ban is a “huge mistake” and he called the Indian government’s aversion to acknowledge digital currency as valid tender “the stupidest thing.”