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India: Delhi High Court Seeks Response From Central Bank On Recent Crypto Ban, Report Says

The High Court of Delhi has reportedly issued a notice to the Reserve Bank of India (RBI), the Ministry of Finance, and the Goods and Services Tax (GST) Council alleging that RBI’s decision to end dealings with crypto businesses violates the constitution, local news outlet Times of India reports today, April 22.

The High Court’s notice is reportedly in response to a claim filed by crypto company Kali Digital last week. After the RBI released a circular on April 5 stating that they would no longer provide services to a person or a business that deals in cryptocurrency, an online petition to reverse the ban was started, gaining over 43,000 signatures by press time.

Kali Digital, which runs the crypto exchange CoinRecoil, set to be launched in August 2018, filed an official claim on April 16, stating that RBI’s circular violates constitutional Articles 19 (1) (g) – allowing citizens the right to any occupation, trade, or business – and Article 14 – prohibiting  discrimination between equals. The High Court of Delhi’s notice, issued by Judges S. Ravindra Bhat and A. K. Chawla, asks for a response from the three parties involved by May 24.

Kali Digital believes that RBI’s decision will prevent CoinRecoil’s business operations in an unconstitutional manner, according to an excerpt of the claim written in local news outlet The Economic Times:

“On account of the impugned circular, the petitioner will not be able to avail banking services to operate the cryptocurrency exchange ‘CoinRecoil’. Such banking services are imperative for the business of the petitioner. Consequently, the business [...] is stillborn.”

Kali Digital included the GST Council in the claim due to what they see as a failure to "frame appropriate regulation on crypto-currencies [sic] [...] [that] increased the uncertainty over treatment of such transactions and is adversely affecting the proposed business of the petitioner,” the Times of India writes.

Tech investor and crypto enthusiast Tim Draper had also responded negatively to the RBI’s circular, saying in an interview that the Indian government’s refusal to recognize cryptocurrency as valid tender is “the stupidest thing” and that he would have told Prime Minister Narendra Modi that RBI’s crypto ban is a “huge mistake.”

source: https://cointelegraph.com/news/india-delhi-high-court-seeks-response-from-central-bank-on-recent-crypto-ban-report-says

Ministry of Finance has the final authority for money and financial matters. Have a look at USA China trade war where Donald Trump has put $150 billion tariffs on Chinese imports.

Looks like China is the next to ban Bitcoin

For now, the please from Kali Digital seemed convincing enough for the Delhi high court to issue a notice to the RBI about the circular which effectively banned crypto-fiat pairs. Let us hope that the RBI will retract the circular and things get back to normal although it seems unlikely as exchange bank accounts have been frozen/terminated.
Also, there is a change.org plea which has over 45k signees that is emphasizing on the stupidity of the move and wanting the RBI to take back its circular.

China has banned & unbanned bitcoin about 10 times

I think the Chinese ban can be ignored.
Because most of the time China has banned it, the Chinese can still use VPN. ;D

Almost fall on my chair laughing 😂..maybe he dont know whats happening about china and crypto thats why he said china will ban cryptocurrency..and even finance department has power on money and financial,still court has a voice tp questioned this matters..

But about the OPs post,this is one good thing to make indians have positive views about this problem

true, i was not surprised and not surprised to hear china country forbid bitcoin. they just want to play with bitcoin prices
it's good to hear this news from india

Well, India has always differed in that it keeps pace with the technology!)
The fact that they come up with something interesting is clear to all!)
Well, the main thing is not to increase taxes too much!

This is just good ways of manipulation for huge whales of the cryptomarket. They use such news to pump and dump coins.
China baned ICOs, not cryptocurrencies in total.

sooner or later, I believe they will also start regulate cryptocurrencies which will be a massive step for blockchain when the country like Inida wiht that many citizens will join the race

I am really hoping that the court in India will be ruling in favor of the petitioner. Beyond this case, it can never be denied that in India there is now a critical number of people who are already into cryptocurrency and they all want their voice and choice to be hard loud and clear. Whatever the decision of the court, we are being assured here that this is only the start for the cryptocurrency movement in India and being a good democratic country its leaders and movers should be listening to the realities in the marketplace and not just be concentrating on one-sided information they got elsewhere. Cryptocurrency is a new industry and certainly it can be abused and used for any illegal dealings but this can also be true with any other industries that is why a good regulatory framework established for this purpose can be the best course of action.

You don't need to be a scientist to smell that China will obviously ban bitcoin. That's why Bitmain has already made its plan to move its mining hardware somewhere else.


This might be a win for CoinRecoil but its going to be a long and arduous battle in my opinion. Its good though to hear that someone challenged this circular but I wouldn't be surprised if India will put a tighter regulations on cryptocurrency. Again, Kali Digital have invested tons of money having their own crypto exchanges that's why they are putting a fight, but they should at least a plan B of sort, if they lose this battle then they should moved to Malta as well, just like Bitmain and OKex did.

1) In India are you free to become whatever you want and that is granted by the constitution?
How about drug smuggler, tax evasionist, organ trader?

2) It doesn't break anything in that article, there is no discrimination there, all banks are going to stop servicing all exchanges, where is the problem?

I've yet to hear that a court order can make an activity legal, if the principle of separation of powers in a democratic country really work as they supposed to, only the Parliament would be able to change it, not a court.


Yeah, it's different that it has it's own pace at doing so, standing still.

It is truly a great news and moreover it is good to see that people from India had guts to go to the court in order to seek justice for what is right. And even I think they have raised a very valid point, Because whatever statement was released by RBI was not within the provisions of the Constitution. So if the justice is now demanded, it ought to be provided in the favor of the right. And if RBI fails to provide for the demanded response to the judiciary, then definitely the Ministry of Finance in India would be under a stake. Rest you k=never know what happens...because it's INDIA! :P

China never banned bitcoin! that's the interesting part :D
the news or maybe i should call it FUD, repeatedly said they have banned and i can date this back to 2013 even but in none of the reports they actually banned it. first one was prohibiting banks from investing in bitcoin, the rest was something in lines of exchanges should be regulated and then closed shady exchanges but never banned bitcoin!

only one thing i can see this problem about crypto currency banning of some country because want to regulate crypto's after banning they came accepting again because government realize big profits lose from their financial stability, why i say this because my point is crypto's giving good job and good earnings to the  unemployed people working in virtual currency in the good ways specially in world of trading online exchange and mining.

I think this scenario was repeating itself. Some countries encountered the same and I think it will be yhe of the cycle. I also believe that they provide an evaluation if it's good or not.

ROFL!! The scenario in China can never become clear. I don't really understand when are they going to take a stand for a firm decision.

However let's talk about this good upcoming news from India. This is very good that a petition was filed in the High Court with the very much reasonable point. Now what I think the court would have to take a decision in favour of the aggrieved because they have got a very valid point. And if the judicial system in India is not biased like many of its governmental departments that are corrupt, I think justice will prevail and power of truth will win.

And this event is also going to create a storm of new media events as they are jot going to remain silent. This will in turn be affecting the prices in the market.

I'm fairly sure there's a clause with an exception for illegal activities. Should this be the case, then their central bank's specific ban of cryptocurrency, which isn't illegal, has no legal grounds.


The thing is, it's technically not illegal. There's no law that states banks can't deal with cryptocurrencies. It's apparently just a circular from their central bank, which could be scrutinized and found unconstitutional by the courts. If nothing else, this is democracy's checks and balances system working.

This shows a direct manipulation of government towards to their citizens criticizing not to participate on crypto currency. They just want to monopolized everything that could possible they can make profit with. I hope they will be like asian countries like japan and singapore who puts a high hope, adapted and trusted crypto currency to be part of their economy.

good information, I think the RBI's action to ban crypto should be responded by legal path. The enthusiastic bitcoin in India should also help the legal process, with the aim that the RBI problem can be solved well, so find a solution. comfortable in government and also comfortable in bitcoin user.

because now the majority of Indian society is already aware that crypto is a solution to improve their economy. Especially in India electricity is very cheap, so good for mining.

India does not prohibit bitcoin as before. India's Supreme Court has recently called on the government to respond to a proposal to establish regulations on the use of top Bitcoin in the country. This is a good news for bitcoin. The use of bitcoin in the world will increase the value of bitcoin.

There are good and bad decisions being made by the Indian government. They just finalized a change in the law to give the

Death penalty for Child Rapists.  ;) We should not judge them for over reacting to Crypto currencies, because there are a lot

of FUD being spread in the media and a lot of consumers complained about ICO scams and Ponzi schemes. We can just hope

that a favourable environment will be created for Bitcoin to thrive in India.  ;)

No China is more important because China has an economy where business is heavily intergrated into government and does not exist properly without the control of central communist leaders.  Obviously there is a thriving private Chinese business 'underground' but its very bearish if these companies are to be seized at any point.

I would say the surprise is to the upside for China in general as they have already ruled against it quite heavily.  I thought the great Chinese firewall was more of an obstacle then that, to small consumer movement maybe not but any attempt at a bigger business is affected by Chinese policy.   Since China is such a large country with over a billion, its going to affect us all to some extent



Its a mistake but its also not something a government should be ruling upon anyway.    Do they have ruling on magic the gathering trading cards also, these are exchanged for money.   Is this also a problem that must be made illegal.
The whole thing is nonsense if considering people should be free to use their private capital as they wish in a legal peaceful way.
The historic thing to mention with India is they have often not been an especially free society, elements in the country are still in favour of communism.   I'm happy to hear if they do respect indivuals and free capital but they are not yet close to the western system so far as I know.

NEW DELHI (Reuters) - India is planning steps to ensure cryptocurrencies are illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in “crypto assets,” a finance ministry official said on Monday.

The Indian government has issued repeated warnings against digital currency investments, saying these were like “Ponzi schemes” that offer unusually high returns to early investors.
But it has not so far imposed curbs on an industry estimated to be adding 200,000 users in India every month.

Lol... Yup very much so. I guess no he/she knows. But on the case of China it's just a clear manipulation of the crypto space so that they can boost their local economy. Unfortunately, this affects the crypto space in a large way because other Asian countries mostly follow suit, and there is a sizeable percentage of crypto holdings in Asia - at the beginning of this year, it was between 20-30% of the total global holdings.

Per the article and news form India, I think it is a good case study for other companies in other countries who face similar situations to see if they can take on these bans via the constitution of the country. truth be told, other countries are just banning it because the major countries in the world are doing so. They have not checked first if it can benefit them, or if their existing legislation prohibits a ban.

if I think work well, succeed, rather than listen to the bitcoin news, give good news about your success with bitcoin it can all change the view in any country, if I think work well, succeed, rather than listen to the news about bitcoin, give good news about your success with bitcoin it all can change the view in any country, very happy if india already give good response :)

All these big countries are banning and then unbanning bitcoin. it must be due to FOMO by governments who now realise that if they don't adopt this technology they will simply be left behind. Soon they will follow venezuela in creating their own tokens

This is a good move by kali digital. In other countries where crypto was banned other exchanges just left without a fight. If only all other countries that ban crypto will realize the need to adopt the blockchain technology. China for one has been very straightforwad eith their stance against crypto. Russia on the other hand said they don't wanna be left behind so they are riding the cryptocraze.

Article 19(1)(g) in The Constitution Of India 1949 (g) is a fundamental human right to practise any profession, or to carry on any occupation, trade or business - which the owners / shareholders of crypto businesses and exchanges are being denied due to the RBI’s ( India’s central bank and regulator ) order to Indian banks to close all accounts linked with any form of crypto business without any reason or fault. Now the high court has pulled in RBI for an explanation.

Have faith in Indian Judicial System. Crypto will win!

Get your 10k memes ready, guys.

It should be how people see something good from technology, even though we must fight for it to be legally as what Digital Times did in India court.
I take good info from this related topic https://bitcointalk.org/index.php?topic=3350109.0 about petition,
https://www.change.org/p/rbi-make-india-at-the-forefront-of-blockchain-applications-revolution  Lets support this.

The main reason for limiting the cryptocurrency mining in China is the consumption of a huge amount of electricity when performing this type of activity. Companies that decide to remain in China under the new rules will be subject to significant restrictions, which in turn will translate into the size of their business and profits. Here is the problem.

It is so strange, I am looking forward to see, how will the world operate, when some countries will accept bitcoin and others will forbid it... In one world, how would we operate

We all know how "China banning bitcoin" will work itself out in the end ::)

I am not a lawyer and I do not know the constitution of India but I believe that the central bank of India has competence to ban cryptos, they may argue that cryptos are dangerous and can be used for money laundering and from what I read in January of this year the finance ministry of India has accused bitcoin of being a ponzi scheme... I do not want to be pessimistic here, but I doubt that this current situation in India could change this year, maybe next year they will change their vision in relation to bitcoin and altcoins


https://media.tenor.com/images/10d9783a8ccf81750ef2886fdcdc2fd1/tenor.gif

There might be but them failing to post the entire article of the Constitution must have some reasons

Central banking would be regulation upon various bank operations and also a supply of liquidity in a centralised banking system.   No big bank will ignore the guidance of something they rely on so much.  Also regulators can hand out fines upto a billion, post 2008 there is less freedom given.   In theory at least, I still think centralised systems are failure prone but thats another discussion.

Courts do have a part in making laws or interpreting precedent based on constitution or various workings.    You might think otherwise but its a very expensive argument to conduct unless you have exact knowledge, most dont.   Business often exercises an upper hand over individuals in this way but I also like that many indivuals especially in a democracy can fight back collectively, that would be aligned with the spirit crypto operates imo.

I think that decision may change over time

Do not think that the decision will be in favor of bitcoin. The possibility of court agreeing with the decision of the RBI is still there.

It is a great news that there are efforts are being taken on the higher level to represent the side of crypto and things are not going considering the single side. Now, as an individual point of view, we must show unity and build something that would make communication easier and that will help us to reduce panic environment and most importantly the misconception among the general public. It's the time that we should come forward to explain core idea of Bitcoin and blockchain because media is extremely unreliable in this regard.

Yeah Chin have banned  and unbanned bitcoin more than 10 times but as bitcoin is good way of earning and people of china better know that bitcoin can give them good amount of profit so they use it by hook or by crook,. But I think soon we are going to hear about India accepting bitcoin, so then it will be time of celebration for us when India will clear about bitcoin acceptance, I wish the same to china as well

I think Indian government at least realized bitcoin. India's Supreme Court has recently called Indian government. now Indian government considering to establish regulations on the use of Bitcoin in the country. I think that it's really a good news for bitcoin. nowadays the use of bitcoin in all over the world will increase the value of bitcoin.now India is planning steps to ensure cryptocurrencies are illegal.

Yeah its a good news but it can take years for the courts to come up with a decision and in few years we wont even remember about this. It doesn't matters if the banks ban bitcoin or not as it can still be bought and sold for cash and theres no way the governments will be able to crack down on that.

This news can enlighten a hope for better circumstance in India to accept Crypto space, but we need to monitor and update the news specially the response of RBI and other India Government agencies. If their responses are good for crypto space, ,I believe it will impact to the increasing of price of crypto currencies as a whole.

This shows a direct manipulation of government towards to their citizens criticizing not to participate on crypto currency. Don't believe this kind of news immediately.

That's a big news and such news plays some role in the forward push of the price by these time period. Because, month back the price fell steep due to the opposite news that came out of the Indian ministry. The appeal to court by the respective exchange service render seems to provide with a positive growth of cryptocurrency within the country.

crypto is here to stay..

But sometime ago there were bad news from India. It seems like they cant make final conclusion yet. I dont know whether the ban would affect on market. Any ideas?

China banned ICO and digital cryptocurrency transactions in September 2017!

The blockchain and digital cryptographic currency are the wave of technology, and no country is willing to fall behind in such a technology race. Perhaps China is the country that reopened the ico.

CNBC india announced that the indian government committee has ruled in favor of regulating bitcoin and is currently establishing a task force to create various regulatory frameworks with the aim of fully legalizing bitcoin in the short-term.