Connect with us

Altcoins

RBI, Finance ministry and GST council answerable to a Crypto – Startup appealed via HC Delhi

Joel Mathew

Published

on

RBI, Finance ministry and GST council answerable to a Crypto- startup, appealed via HC Delhi
Source: Pixabay

On the 5th of April, the Reserve Bank of India [RBI] declared cryptocurrency unconventional and targeted all regulatory bodies to discontinue transactions with individuals and businesses dealing in cryptocurrencies. This ban prevents banks from dealing with crypto-companies.

RBI Deputy Governor B.P. Kanungo at a press conference acknowledges:

“Bitcoins and its brethren were getting international attention for quite some time for their speculative value. These tokens are not regulated uniformly at an international level. It is feared that these digitalized currencies can adversely impact the market integrity and capital controls.”

He further says:

“The growth of these virtual currencies can threaten the financial stability of the country as well. RBI regulated that entities will have to unwind any existing business relationship with those dealing with VCs within three months.”

Kali Digital Ecosystems had planned to launch a crypto-exchange platform, Coinrecoil in the month of August. The company claims that it has taken sizeable investments but after the RBI’s decision the company will collapse.

The company also labeled this as discrimination as, under Article 301 of the Indian Constitution and guarantees the freedom of trade and commerce throughout India. They also stated that this is due to the RBI’s mistake in defining the term ‘Cryptocurrency’. This, in turn, makes it ambiguous in the Indian market. Reportedly, the company also claimed that GST- Goods and Services Tax Councils is also a reason for this uncertainty as they have ignored to embark tax laws particular to cryptocurrency.

Anirudh Rastogi, the Managing Partner at the TRA law firm claims:

“The full ban on cryptocurrency would only bring more problems. Imposing a bar would make tracing cryptocurrency deals even harder for the government. Ban of cryptocurrencies in India is not permanent as the largest economies of the world are giving it legitimacy.”

Rahul Raj commented on Twitter saying:

“This knee-jerk move by the RBI has adversely impacted the industry, but the directive has also given financial institutions a time frame to settle all the pending transactions with the exchanges. So, effectively, this time allotted can be used by traders to wisely transact on their crypto-assets. He is also apprehensive that this move by the RBI might lure traders to do under the table dealings.





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Joel Mathew is a full-time creative content writer for AMB Crypto. He's an English honors graduate from Christ University. He's skilled in research analyses and produces valuable content in the field of blockchain and cryptocurrency.

Continue Reading
Advertisement
1 Comment

1 Comment

  1. Avatar

    Satish

    April 19, 2018 at 12:10 PM

    Then Why the hell Gov continued to take GST and Taxes on each and every transaction on crypto trade in exchange. RBI indirectly telling Indian people that look, we screwed up ourself in controlling the fiat currency, Vijay Malia, Nirav Modi ran away and many more in queue. And we can’t afford an additional headache to regulate cryptocurrency. So please forgive us

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Facebook’s Libra hit by more accusations, Balaji Srinivasan on BTC investment and more

Jibin M George

Published

on

Crypto News – 24 June

Erik Voorhees on Bitcoin: According to the CEO of Shapeshift, Bitcoin’s relative traceability has allowed governments to become comfortable with it

Read more at https://bit.ly/2WVviJW

Max Keiser on gold’s ‘resurgence:‘ Max Keiser made news after he stated that Bitcoin’s growing popularity as a competing store of value and millennials were responsible for gold resurfacing in the conversation about store of value assets

Read more at https://bit.ly/2Xve2zp

Tron back in the top 10: A month after CEO Justin Sun promised to get Tron back in the top 10 of the world’s largest cryptocurrencies, TRX surged by over 6% to achieve the same by overtaking Cardano

Read more at https://bit.ly/31TXekX

Bank of International Settlements on Libra: While talking about Facebook’s Libra, BIS’s report attested to the need for sound public policy, financial regulation, competition regulation, and data privacy regulation

Read more at https://bit.ly/2Fsoptu

Bitcoin short futures position on the rise: According to a Twitter user, 70% of all Bitcoin short futures position are taken by four traders

Read more at https://bit.ly/31Om4CQ

LocalBitcoins’ Russian Ruble trading charts: According to CoinDance, the weekly LocalBitcoins chart revealed that the Russian Ruble [RUB] recorded towering volumes, even after the June 1 cash-exodus announcement

Read more at https://bit.ly/2JgRWYz

Howard Chu on Monero: According to the Founder of Symas Corp., Monero was “outstripping” other projects in the space which have larger budgets, in light of the new features added to Monero

Read more at https://bit.ly/2Y8IsEQ





Subscribe to AMBCrypto’s Newsletter


Continue Reading