RBI’s been in news ever since it issued a statement stating that it will not deal with or provide any service to the entities dealing with any cryptocurrency such as BitCoin. However, it is not finalized and the inter-departmental group will study and provide guidance to introduce this centralized digital currency and will submit the report by end of June 2018. This ban will affect a lot of existing crypto users who have already invested in BitCoin and other virtual currencies and crypto exchange firms. In fact, the immediate ban becomes a controversial topic and been questioned by retail investors and digital participants several times. This time, a crypto exchange start-up firm Kali Digital Eco -Systems which runs CoinRecoil has a filed petition in high-court against Reserve Bank of India (RBI), the GST Council, and the finance ministry. It is not like the first time when a petition has been filed against RBI’s circular related to new cryptocurrency, before that an online petition filed by Indian crypto users under the name “Digital Asset Exchanges of India”.
You must be wondering, On what grounds Kali Digital filed a petition against RBI?
Well, as per the resources, It was found that it was filed by Legal firm Khaitan and Co, who is serving as an advocate for petitioner Kali Digital in the written petition W.P.(C) 3677/2018 filed has alleged that the Reserve Bank of India violates Articles 19 (1)(g) and 14 of the Indian Constitution.
India has taken this step just after China stepped up and welcomed BitCoin and other cryptocurrencies. Instead, of following the footsteps of China, India decided to ban these virtual currencies and stopped any services related to entities dealing with virtual currencies. This announcement has changed the perception of equity investors regarding investing in BitCoin and other VCs. On top of that virtual currency has become the center of many Ponzi schemes and scams lately.
According to Rishabh Mastaram (Founder of RGM Legal), the virtual currencies or crypto assets are not fiat currency. And in India, only RBI can issue currency as per law. Still, existing crypto users can’t transact or exchange their BitCoins with the Indian Rupee or vice-versa. It is because, in India, the banks have already stopped their services to the cryptocurrency exchanges.
As a result, the daily cryptocurrency trading in the country has gone down to more than 50 percent.
Multiple petitions have filed against RBI over the new currency launch. Many crypto-users and Cryptocurrency firms have decided to go against it. It is difficult to come to a conclusion especially when a country like “China” agreed to welcome BitCoins and other VCs however, India is still trying to control people by launching a new centralized virtual currency and thinking of handling Blockchain by themselves. Let’s see, how things will work out? If you have any doubts or would like to add something up then don’t forget to comment in the section given below. We would be happy to hear from you.
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