Apex banking organisation of India - Reserve Bank of India has been taken to the court over its recent announcements on almost shutting down the crypto dealings in India.
RBI issued the following statement on 6th april this year
"It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately,”
This statement almost meant that cryptos would come to an end in India within a period of 3 months.
Everyone was expecting some retaliation or some kind of action from India's top Crypto exchanges ZEBPAY, KOINEX, but no one came forward in this regard.
But recently Kali Digital Eco-Systems, which had plans to launch its own cryptocurrency exchange, CoinRecoil, in August 2018, challenged this order from RBI, calling it unconstitutional. Following statement was released by their lawyers
“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. Logical and well-thought argument backed by solid facts are the primary requirements under the constitution to put a stop to any business in India,”
Kali also rounded up the GST council of India, stating that they have not been able to put up a firm stand regarding GST regulations for cryptos, which also contributed to this crackdown from RBI.
Many other exchanges are also considering to follow the footsteps of KALI and challenge this order form RBI in other courts.
Personally I believe that it was an arbitrary order which is kind of unconstitutional. You can not ban anything which you don't understand, so there is always a way to come up with a solution. The whole market can be regulated, as done in KOREA.
Next hearing is on May 24. Keep watching this space for any further updates.