The Delhi High Court on Friday sought the Reserve Bank of India’s (RBI’s) stand on a company’s plea against its circular which prohibits banks and financial institutions from providing any service in relation to virtual currencies such as cryptocurrencies.
Justice Rajiv Shakdher also issued a notice to the RBI, the finance ministry and the GST Council and sought their stand on the petition challenging the RBI’s April 6 circular ‘Withdrawing Banking Support to Virtual Currency Exchanges’.
Filnstone Technologies Pvt Ltd, which is in the business of cryptocurrency trading and providing online cryptocurrency digital wallet service for Bitcoin, Money trade coin, sought court’s direction for quashing of the circular issued by the Reserve Bank of India as the same was “arbitrary, unconstitutional”.
The company submitted that circular issued by the RBI is devoid of any due application of mind and will cause huge prejudice to those who have invested their hard earned money into the business and transaction pertaining to the virtual currencies and cryptocurrency.
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