The Reserve Bank of India’s recent prohibition on banking services for crypto-related companies is to be examined by the Delhi High Court, which could decide the future of crypto in India.
The Delhi High Court (one of 24 state-level courts in the Indian judiciary system, which are beneath the Supreme Court of India but above district-level courts) has set a May 24 date to hear arguments against the Reserve Bank of India’s (RBI’s) recent decision to halt banking services “for any individual or business entities dealing with or settling [virtual currencies],” according to The Times of India.
The appeal was initiated by a “writ petition” filed by Gujarat-based Kali Digital Ecosystems, which had plans for launching an exchange platform and is arguing that the ban is “arbitrary and unconstitutional.” Kali Digital claims to have already undertaken substantial investment on the road to launching its CoinRecoil exchange this August.
In addition to sending notice to RBI, presiding justices S. Ravindra Bhat and A. K. Chawla also submitted related correspondences to the secretary of the Union of India, the Ministry of Finance, and the Goods and Services Tax Council, all of which were first noted in the Kali Digital Ecosystem petition.
Although the fate of cryptocurrency in India might be hanging in the balance, distributed ledgers like blockchains are being seriously explored in the country for a variety of use cases, such as combatting counterfeit pharmaceuticals.
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