High Court restricts the usage of Cryptocurrency

May 22 2018 07:18 PM
High Court restricts the usage of Cryptocurrency

The Reserve Bank has issued a circular on the diplomatic digital currency like Bitcoin and Flintstones Technologies Pvt., A company related to the digital currency business, challenged the Delhi High Court.  The Reserve Bank has banned banks and financial institutions from imparting services to businesses related to such currency. Regarding this, Flintstones Technologies Pvt. signed the petition has been listed yesterday for hearing in the presence of Justice Rajiv Shankar's bench and directed him to present it before a bench hearing a similar case. 

Significantly, Flintstone Technologies Pvt. demand for withdrawal of the Reserve Bank of the 6th Circular which has been called arbitrary, inappropriate and unconstitutional. On April 22, the Delhi High Court, hearing the petition of the company of Gujarat, asked to give its answer to the Center, Reserve and GST Council. Bitcoin is a virtual currency in which millions of transactions are done. Considering this currency as impractical and dangerous, the Reserve Bank has banned this.   

Rashmi Deshpande from law firm Khaitan & Co. was quoted in the release as saying:  "The move by the RBI has put the burgeoning cryptocurrency sector in jeopardy and may affect the basic rights of such entities to carry on any trade."  In its circular, the RBI had said that financial institutions and banks under its authority can no longer deal with cryptocurrency exchanges and other related services.

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