April 22, 2018: Admitting petition of Ahmedabad based cryptocurrency exchange CoinRecoil (Kali Digital Eco-Systems Pvt Ltd), Hon’ble High Court of Delhi has issued a notice to Reserve Bank of India, The Union of India through Secretary, Ministry of Finance and GST Council. The next hearing in this case is on May 24 2018.
Kali Digital Eco-Systems Pvt Ltd (CoinRecoil) filed a petition against Reserve Bank of India, The Union of India through Secretary, Ministry of Finance and GST Council in Hon’ble High Court of Delhi on April 16, 2018 challenging RBI circular dated April 6, 2018 “Withdrawing Banking Support to Virtual Currency Exchanges” in Delhi High Court.
CoinRecoil requested Hon’ble High Court to issue of an appropriate writ, order or direction quashing circular bearing reference number DBR.No.BP.BC.104/08.13.102/2017-18, dated 6 April 2018 issued by RBI to be arbitrary, unconstitutional and violative of Article 14 and Article 19(1)(g) of the Constitution of India, 1950 (“Constitution of India”).
Speaking on the matter, Ms. Rashmi Deshpande, Associate partner, Khaitan & Co. said,
“The move by the RBI has put the burgeoning crypto currency sector in jeopardy and may affect the basic rights of such entities to carry on any trade. The circular appears to be arbitrary and unconstitutional since it does not give strong facts as to why RBI is against the business of cryptocurrencies. A logical and well thought arguments backed by solid facts are the primary requirements under the Constitution to put a stop to any business in India”
CoinRecoil in its petition has also included Union of India and Goods and Service Tax Council as respondents along with the RBI. Union of India, represented through the Secretary, Ministry of Finance (Department of Economic Affairs) has granted powers to RBI to issue the impugned circular while GST Council have failed to introduce appropriate regulations with respect to cryptocurrencies in the Goods and Services Tax law.
Kali Digital Eco-Systems Pvt Ltd is building FIAT-to-Crypto platform for buying, selling and storing digital assets with the trade name of CoinRecoil. Official launch of CoinRecoil is scheduled for August 2018. Company also plans to expand operations in Canada, Singapore, UAE and Australia.
Headquartered in Ahmedabad, Gujarat (India), company aims to address current challenges in crypto trading and make CoinRecoil – the first choice for anyone who thinks of investing in Crypto space by offering fundamentally strong coins and best trading features while also ensuring safe, secure and seamless trading experience for users.
CoinRecoil plans to have a browser and mobile apps integrated with secure wallets for its users which will enable customers to buy, sell, send, receive, or store all the supported crypto currencies. Starting with ten major cryptocurrencies, company will add more crypto currencies based on market demands.
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Update: Unintentional repeated information about Kali Digital was removed.