The blockchain platform Theblockchainstory has filed a petition in the Supreme Court against the Reserve Bank of India (RBI) clampdown on virtual currency.
The writ petition is filed under Article 32 of the Constitution of India which provides a remedy for violation of fundamental rights.
Satyam Tiwari, Founder of Theblockchainstory, a blockchain tech platform for investors, entrepreneurs and innovators, claimed a violation of its fundamental rights under Article 14 and 19 (1)(g) which guarantees Right to Equality and Freedom to Trade & Business, respectively.
The RBI has not provided any reason, evidence, statistics or empirical data to show that the ban imposed by the Impugned Circular is in any manner required to fulfil any objective. It has not referred to any documents or relevant materials in the Impugned Circular, the petitioned copy in possession of Entrackr reads.
The ruling will kill the blockchain industry in the country and stop the technological advancement, it further added.
Earlier on April 6, the bank regulator had released a statement directing all regulated entities, including banks, e-wallets, and payment gateway providers, to stop dealing with individuals and businesses in decentralised currency.
“In view of the associated risks, it has been decided that with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs (virtual currencies). Regulated entities which already provide such services shall exit the relationship within a specified time,” the RBI had said.
“This step by Reserve Bank of India is an obstacle to innovation which will force businesses to move out of India,” said Tiwari.
After the ruling, many bitcoin exchanges such as Zebpay, Unocoin, CoinSecure, BuyUcoin and BTCX India reportedly took legal advice. Most of them explored to shift base to countries, which could be supportive of their businesses.
This is not the first time, a cryptocurrency platform approached the court. Kali Digital Eco-Systems, an Ahmedabad-based early-stage cryptocurrency platform that runs crypto exchange CoinRecoil, alleged that the central bank guideline violates the Constitutional rights.
Traders had also been running a campaign against the RBI to rethink its decision on virtual currency.