Saturday 5 May 2018

Bitcoin trading ban: Another company moves Delhi HC against RBI circular

A copy of bitcoin standing on PC motherboard is seen in this illustration picture. (Photo: Reuters)

A company engaged in trading in crypto-currencies has challenged an RBI circular, prohibiting banks and financial institutions from providing services in relation to such virtual currencies, in the Delhi High Court.

The plea was yesterday listed for hearing before Justice Rajiv Shakdher, who asked the high court registry to place it before the bench which is already hearing a similar matter.

The petitioner company, Flintstone Technologies Private Limited, has sought the withdrawal of the April 6 circular of the Reserve Bank of India (RBI), claiming that it is "arbitrary, unfair and unconstitutional".

The Maharashtra-based company has contended that the RBI circular has "fenced" all the entities regulated by the apex bank from providing services to any individual or business dealing in virtual currencies like crypto-currencies.

The company, which claims to provide an online crypto-currency digital wallet service for Bitcoin and Money trade coin -- both virtual currencies -- has contended that the RBI has not spelt out any reasons for imposing the restrictions.

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