Reserve Bank of India(RBI) released a notice in the year 2018 asking the banks and other financial institutions to cancel their associations with cryptocurrencies and prohibited them from providing their services to them.
Ever since then a legal battle has been going on and recently, Internet and Mobile Association of India(IAMAI) have claimed in the Supreme Court that RBI had no rights to impose a ban on cryptocurrencies as there is no legislative policy present for virtual currencies.
They further added that the central bank didn’t conduct thorough research on the cryptocurrencies before imposing a ban. Advocate Ashim Sood gave the court definitions of ‘virtual currency’ and provided with information from various sources to tell them that it has many meanings.
IAMAI believes that RBI banned the usage of cryptocurrencies in the country just on the bases of “moral grounds” and no studies or research was conducted to understand and analyze the effect of the virtual currencies on the country’s economy. They further added that the blockchain technology used in these virtual currencies is decentralized and transparent and not disputed; therefore, the ban is not legitimate.
As the argument continued and remained inconclusive, the court has decided to hear the matter next Tuesday. The Internet and Mobile Association of India is a non-profit industry body and works towards the expansion and enhancement of the online and mobile value-added services sector.