Indian crypto currency exchange takes Central Bank to court against recent ban

[avikz]

According to a recent publication from bitcoin.com, Kali Digital Eco-Systems, the company behind the upcoming crypto currency exchange "Coin Recoil", has appealed to the High Court in Delhi against the recent crackdown on banks providing services to bitcoin related companies by the Reserve Bank of India (RBI). It argues that the ban is unconstitutional on two main grounds.

Article 19 of the Constitution of India guarantees citizens’ rights to carry on any occupation, trade or business. But by preventing exchanges’ access to baking services the government is in affect preventing people from engaging in the business of their choice.

Article 14 prohibits discrimination based on arbitrary and unreasonable classification. The petition explains that the RBI did not provide a clear definition of what constitutes ‘virtual currency’ and that this ambiguity dilutes any reasonability in what may be alleged as a classification.

I say, at least someone has the guts to do it! So if you see the change, be the change and sign this online petition for a better India!

Sign here: https://www.change.org/p/rbi-make-india-at-the-forefront-of-blockchain-applications-revolution

News source: https://news.bitcoin.com/indian-exchange-takes-central-bank-to-court-over-bank-ban/

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[Palmerson]

This is the right decision. But I don't believe the Indian court will rule against the government. You don't think the Central Bank made this decision on its own, do you? The court will name a million reasons that it is impossible to trace the origin of bitcoins by standard methods and for this reason it can not be recognized as a currency and therefore banks can not perform exchange operations.

[supermine]

This is the right decision. But I don't believe the Indian court will rule against the government. You don't think the Central Bank made this decision on its own, do you? The court will name a million reasons that it is impossible to trace the origin of bitcoins by standard methods and for this reason it can not be recognized as a currency and therefore banks can not perform exchange operations.

The courts are independent of government so there is no need to support the governments are banks decision,there are so many times Supreme court of India make decision against the governments rule so there is chance for the bank to revise their decision about crypto if it got enough petition from the citizen.

[jseverson]

Woah, it looks like they actually have a solid case against the banking ban. I mean, crypto isn't even illegal there so it was clearly an unreasonable decision in the first place. I'm looking forward to a favorable ruling.

This is the right decision. But I don't believe the Indian court will rule against the government. You don't think the Central Bank made this decision on its own, do you? The court will name a million reasons that it is impossible to trace the origin of bitcoins by standard methods and for this reason it can not be recognized as a currency and therefore banks can not perform exchange operations.

Yeah, this truly is concerning but the Supreme Court is in a different branch of the government in India, so it doesn't necessarily have to side with the executive and/or legislative. That means there is hope, no matter how small, that they can reach a favorable ruling despite powerful parties pulling the strings.

[livingfree]

Great news. I thought that Indians will not do something about the ban and they will just let these banks dominate their behavior and decision of banning crypto transactions.

That Article 19 of India's institution looks favorable to the complainant/s.

[whirlcoin]

Great news. I thought that Indians will not do something about the ban and they will just let these banks dominate their behavior and decision of banning crypto transactions.

That Article 19 of India's institution looks favorable to the complainant/s.

Yes that is a great news still people have the rights to ask what they needed because India is a democratic country but still the results maybe in the favour of government side unless there were large number if petitions were recorded against this rule so all the Indians make the petition and the link is available at OP.

[BitHodler]

Woah, it looks like they actually have a solid case against the banking ban. I mean, crypto isn't even illegal there so it was clearly an unreasonable decision in the first place. I'm looking forward to a favorable ruling.

The only thing that does actually concern me a bit, is the fact that because of it being a different category, banks for themselves could decide what to do and what not, so how will we fight a bank for ruling its own platform?

How will one open a case against a bank being totally in right when it comes to its own way of doing business? It's a clear sign that we should seriously rethink what banks stand for, and distance ourselves from them.

At first you have the central bank playing a role of importance, and then the banks as separate entities as well. Too many potentially negative variables involved to become a reliable partner for an exchange.

[Oceat]

I would say that finally, someone really stood up on their ground when the governments interfere on their rights. Someone has the courage to do it and i can say that he did the right thing. It should be fair to everyone when prohibiting something to them specially when they choose what kind of field of works they want to. I want to know more about of this news and what would be the bank will going to do about this matter.

[jaocoincrypto18]

According to a recent publication from bitcoin.com, Kali Digital Eco-Systems, the company behind the upcoming crypto currency exchange "Coin Recoil", has appealed to the High Court in Delhi against the recent crackdown on banks providing services to bitcoin related companies by the Reserve Bank of India (RBI). It argues that the ban is unconstitutional on two main grounds.

Article 19 of the Constitution of India guarantees citizens’ rights to carry on any occupation, trade or business. But by preventing exchanges’ access to baking services the government is in affect preventing people from engaging in the business of their choice.

Article 14 prohibits discrimination based on arbitrary and unreasonable classification. The petition explains that the RBI did not provide a clear definition of what constitutes ‘virtual currency’ and that this ambiguity dilutes any reasonability in what may be alleged as a classification.

I say, at least someone has the guts to do it! So if you see the change, be the change and sign this online petition for a better India!

Sign here: https://www.change.org/p/rbi-make-india-at-the-forefront-of-blockchain-applications-revolution

News source: https://news.bitcoin.com/indian-exchange-takes-central-bank-to-court-over-bank-ban/

Well,this is a great news for the Crypto enthusiast people of India in which they could have a fair fight with the Central bank in which the High court is a independent governing body of the government in which their final decision or verdict shall be obey and respect by the other branches of the government such as their central bank. If they will win the fight then it will be a good timing because India could be an additional support to the market in which it is now starting to pump.

[audaciousbeing]

According to a recent publication from bitcoin.com, Kali Digital Eco-Systems, the company behind the upcoming crypto currency exchange "Coin Recoil", has appealed to the High Court in Delhi against the recent crackdown on banks providing services to bitcoin related companies by the Reserve Bank of India (RBI). It argues that the ban is unconstitutional on two main grounds.

Article 19 of the Constitution of India guarantees citizens’ rights to carry on any occupation, trade or business. But by preventing exchanges’ access to baking services the government is in affect preventing people from engaging in the business of their choice.

Article 14 prohibits discrimination based on arbitrary and unreasonable classification. The petition explains that the RBI did not provide a clear definition of what constitutes ‘virtual currency’ and that this ambiguity dilutes any reasonability in what may be alleged as a classification.

I say, at least someone has the guts to do it! So if you see the change, be the change and sign this online petition for a better India!

Sign here: https://www.change.org/p/rbi-make-india-at-the-forefront-of-blockchain-applications-revolution

News source: https://news.bitcoin.com/indian-exchange-takes-central-bank-to-court-over-bank-ban/

They actually have a point based on the section of the constitution they quote but there is no need to be joyous over it because the real outcome to be joyous over is a matter of interpretation by the people who would likely not be youths, but who have done things the same way for ages for decades and if they make decision that is in favor of crypto, its going to be a great embarrassment to the government.

The same constitution that guarantees freedom of association, freedom of movement also stops anyone from joining groups against the state, also stop individual from walking into government facilities without authorisation despite the freedom of movement.  The point is, its a matter of interpretation and what they should have done is to ask for an injunction pending the determination of the suit then stall as much as possible in other to have the population to influence the decision.

[ecnalubma]

It seems that India is turning conservative against technological revolution, yes its very unconstitutional to just cut relations between banks and crypto industry without a proper forum. Cryptocurrency and blockchain is not against the state or anything, its a breakthrough and technological phenomena that will replace the current outdated system that we used everyday.

[Theb]

They can use articles in their constitution as their legal standing but so as the RBI can use other articles it their constitution as defense. Obviously this will always go down on how the judge will translate their own constitution. Like what I said RBI will also use the constitution and if their argumet is better than what a business is praying for then they might side with their own reserve bank.

RBI will most likely use a defense structured in topics like :

• Indian Rupee is the only official currency of India
• Crytpcurrency is being used for criminal activities therefore it is a threat to national security
• It will hinder our economy

[Marma Kalari]

According to a recent publication from bitcoin.com, Kali Digital Eco-Systems, the company behind the upcoming crypto currency exchange "Coin Recoil", has appealed to the High Court in Delhi against the recent crackdown on banks providing services to bitcoin related companies by the Reserve Bank of India (RBI). It argues that the ban is unconstitutional on two main grounds.

I am glad that someone is questioning this crackdown on banks, some of the exchanges stopped dealing with INR on hearing the notification and India being a Democratic country we the people have the rights and let the voice of the common man be heard and i have filed the petition and hopefully we will see more support from the bitcoin community.

[ahmad21]

Something of this sort was expected to happen!! And it is good to see that somebody had the courage to take up the initiative. Also to mention that India has an independent judiciary, so the government of India cannot override the decision made by the judicial system until that very decision is within the provisions of the Constitution of India. So if the courts find this appeal rational and within the purview of law, decision might be taken in the favour of the filing authority.

But  there are a lot of other things to be considerd here as well. If the courts do not find this appeal as correct and pass a judgement against it, then the scenario might become quite risky. Because you never know what will be the final decision if the court after this hearing. And in case a permanent ban is imposed, the situation will worsen to a further higher level.

Read about it more: http://menafn.com/1096746659/Crypto-Corner-Indian-Startup-Challenges-Central-Bank-NY-AG-Asks-Exchanges-for-Transparency-and-Coinone-to-Open-in-Indonesia

[xdrpx]

I'm so glad that Kali Digital Eco-Systems has taken the first step towards statement issues by the RBI against cryptocurrency businesses. What's shameful of the RBI is that it's making it too obvious that they can't handle how cryptocurrencies will no longer be under their supervision and they'll have little or no control over the participants exchanging cryptocurrencies. There must be transparency and lawfulness with regards to how Central agencies can pass laws. There was never any transparency regarding the panelists involved in deciding their public statements and no public opinion was really taken with regards to accepting cryptocurrencies for businesses. I hope Kali wins this one out on the grounds of Article 19 and I'm hoping to see RBI lay appropriate regulatory procedures for cryptocurrency businesses and to revert back their strict policies for banks to provide their services to such businesses and their customers using credit cards to procure cryptocurrencies.

[buwaytress]

Despite what is in the public eye on their legal system - and I'm not saying it's great, there's a lot of horrendous shit going on with human rights there - India's really been progressive with the way citizens have been able to use the law for greater transparency. Europe still lags behind and has picked up on India's Right to Informations Act successfully brought to pass more than 10 years ago. They might yet pave the way for more legal precedent with blockchain in the coming years, and this might be seen as the first step towards that.

Good one on them, even if this still only benefits the upper middle class.

[livingfree]

Great news. I thought that Indians will not do something about the ban and they will just let these banks dominate their behavior and decision of banning crypto transactions.

That Article 19 of India's institution looks favorable to the complainant/s.

Yes that is a great news still people have the rights to ask what they needed because India is a democratic country but still the results maybe in the favour of government side unless there were large number if petitions were recorded against this rule so all the Indians make the petition and the link is available at OP.

They have their own rights to defend and ask that will benefit the majority.

We don't need to do anything now but let's all hope that the results will be positive and when the news comes out that way. Let's see on how the market will react.

[Anuj_Sharma]

 India has to find its own space in the world of crypto currencies.
Outright bans are not solutions , as the technology will catch up.

As a country trying to encourage entrepreneurship, crypto currencies offer an excellent way for entrepreneurs to access international markets.

[richardsNY]

We don't need to do anything now but let's all hope that the results will be positive and when the news comes out that way. Let's see on how the market will react.

I doubt that the market will get affected much, especially so if we take into consideration that their initial announcement hasn't really lead to anything of noteworthy nature. I don't really care much about what the market does with this news, and I seriously hope it won't do anything, but I do care about how people there and businesses are affected by this barbary, which should stop as soon as possible. Financial institutions decide for us what we can do and what we can't, which is horrible -- this goes straight against everything that's stimulating a fair and honest market/wealth development. If you as government want an increase in poverty, then this is definitely the path to follow....

[RamBahadur.Gurung]

I know how slow these Indian courts are in passing down the judgement. This case will most probably go on for 10-15 years and by the time we get a verdict Bitcoin may not even exist.