An order by RBI which prohibits banks and financial institutions from providing any service in relation to cryptocurrency is challenged by Gujrat-based company Kali Digital Ecosystem Pvt Ltd. The Company is proposed to launch its crypto exchange later this year.
A bench of justice issued a notice to the Ministry of Finance and The Reserve Bank of India.
The Company claimed that it has already invested a substantial amount to start its crypto exchange 'Coin Recoil' in India in August this year.
According to circular RBI have prohibited from "providing any service in relation to cryptocurrency including transfer and receipt of money in accounts indulged in purchase or sale of crypto". For those who already providing such services three months time is given to cease such activities.
The company also claimed that lack of regulations on virtual currencies has increased the uncertainty over trading in crypto and is adversely affecting its proposed business.
Cryptocurrency becoming popular very fast in India but still, the government has not issued any guidelines or regulations regarding trading so new investors are confused and unable to jump in the crypto world. Now the time has come that Indian government should issue guidelines and make regulations to trade and invest in virtual currencies.
