The High Court of Delhi has issued a notice to India's central bank over its order barring banks from engaging with cryptocurrency services.
The move comes as the result of a petition lodged against the Reserve Bank of India by Kali Digital Ecosystems, an Indian firm planning to launch an exchange platform called CoinRecoil in August of this year.
The firm also included the Indian government in the petition, including the Ministry of Finance and others, according to a statement from the firm.
The notice sent to the central bank effectively recognizes the company's petition at the high court. The next hearing over the case has been set for May 24.
Rashmi Deshpande from law firm Khaitan & Co. was quoted in the release as saying:
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.
Last November, the Indian Supreme Court asked the government to respond to a petition seeking clarity on the matter.
Statue of Justice image via Shutterstock
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.