Crypto trade ban: IAMAI files petition against RBI in Supreme Court

Since RBI's clampdown against cryptocurrency trading, the constitutional validity of the banking regulator's decision has been challenged by crypto traders, exchanges and others. The dilly-dallying on virtual currency trading is now facing a serious contender IAMAI standing against the ban.

In a first instance by any representing body, the Internet and Mobile Association of India has filed a writ petition in the Supreme Court to put a stay on the RBI decision.

Earlier, the apex banking body had released a statement directing all regulated entities, including banks, e-wallets, and payment gateway providers, to stop dealing with individuals and businesses in the decentralised currency.

The regulator has given banks a deadline of July 6 to adhere to the new rule.
According to an ET report, the petition was filed in the apex court on Tuesday. IAMAI president Subho Ray has confirmed the filing of the petition but did not want to comment since the matter was scheduled for a hearing.

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This is the fifth such petition filed against the RBI seeking the ban on such trading entities. On Monday, a blockchain platform Theblockchainstory had filed a petition in the Supreme Court against the ban.

Earlier various cryptocurrency platform approached the court. One such platform Kali Digital Eco-Systems that runs crypto exchange CoinRecoil, alleged that the central bank guideline violates the Constitutional rights.

Besides, traders had also been running a campaign against the RBI to rethink its decision on virtual currency.

For uninitiated, last year a group of cryptocurrency exchanges had come together to form an industry body called the Digital and Blockchain Foundation of India. It was meant for bridging the gap between government and regulator.

The association which includes notable crypto exchanges such as Unocoin, Zebpay and Conisecure later merged with IAMAI.