The Delhi High Court has sought the response of the Centre, the Reserve Bank of India, and the Goods and Services Tax (GST) Council on a plea challenging a circular which prohibits banks and financial institutions from providing services in relation to virtual currencies, including cryptocurrencies. Gujarat-based company Kali Digital Ecosystems Pvt Ltd is proposing to undertake the business of operating a cryptocurrency exchange system for customers within the country. It sought quashing of the circular on the ground that it is “arbitrary, unconstitutional and violative of the Constitution”. The petition has also sought a direction to the GST Council to “frame appropriate regulation on cryptocurrencies”. Cryptocurrencies are digital currencies in which encryption techniques are used to regulate generation of currency units and to verify transfer of funds, operating independently of a central bank.

Source: The Hindu April 22, 2018 20:17 UTC