|May 15, 2018 02:11 PM||By: John Patrick Mullin | 5680 Views|
More bitcoin traders are questioning India’s directive for banks to stop financial services to cryptocurrency exchanges in the populated Asian country, with a court discussion of the challenge placed for Thursday this week amid accusations that the RBI (Reserve Bank of India) is diminishing “essential” trade services.
On Monday, the Economic Times in India stated that petitioners under the modern effort to have the bank reverse its directive or visit it are of the belief that they should continue to appropriate banking services, as cryptocurrencies are not banned in the country.
“Banking is an indispensable service. How can one refuse access to an essential service when I am not taking anything illegal? You have not told Virtual Currencies banned in the country.”
In April this year, the Indian central bank announced finance institutions following its regulation and oversight were no longer permitted to deal in or provide services to traders or investors trading in virtual currencies. The latest court challenge will be following in court on May 17.
The 11 delegates of different virtual currency-aligned businesses challenging the RBI in the modern writ are disputing the constitutional validity of the judgment by the Indian financial services sector regulator to prevent banks from extending services to companies that facilitate cryptocurrency trading.
Banks in India have until July 5 to be compliant with the central bank’s directive, hence the charge by cryptocurrency exchanges and traders to claim the bank’s decision. On May 24, the Delhi High Court will further hear from 2 exchanges, Kali Digital Eco-systems and MoneyTrade Coin, which are both claiming the central bank’s move.
Bitcoin traders and different cryptocurrency exchange companies have in the past several months moved the Indian Apex Bank to court for its decision. Beginning this month, Flintstone Technologies Private Limited which contains the MoneyTrade Coin exchange challenged India’s bitcoin banking ban, understanding up on the 1st challenge by digital asset buying platform CoinRecoil in the High Court of Delhi.
Some news channel announced last week that 4 other Indian cryptocurrency exchanges had together filed a Writ Petition (Civil) no. 373 of 2018 under Article 32 of the Constitution challenging the constitutional legality of the Central Bank’s Circular. These combine Coindelta Exchange, Koinex Exchange, Through it Exchange and CoinDCX.
Although the ban on Indian banks has had extensive effects on cryptocurrency trading in India, virtual currency exchanges and traders in the country have rotated to crypto-to-crypto trading as they struggle for different ideas out of glitches introduced by the RBI directive.
“Also if there were no RBI circular, the crypto to a crypto product would have happened. But, because of the circular and the evidence that fiats may no longer be in the picture, it did run up and encouraged the solution sooner,” stated Ajeet Khurana, the CEO of Zebpay.