After the Reserve Bank of India instructed banks to stop doing business with cryptocurrency exchanges, the market hasn’t remained silent.
“We are looking at filing a petition to challenge the RBI’s order. At the moment we are working on it and trying to figure out if we should get together with the other exchanges and do it collectively,” said a cryptocurrency exchange CEO anonymously when speaking to Quartz. Another exchange’s head confirmed that this is a plan of attack that it is pursuing, although details on the matter are scant.
Currently, Indian crypto exchanges are failing to manage liquidity and doing business properly. Since they no longer can have bank accounts, this eliminates the possibility for people to purchase or sell cryptocurrencies through digital means. The only other option is either acquiring it through a local “dealer” in exchange for cash or doing the same by walking up to the headquarters of an exchange.
“[The RBI] has come with this overarching order that can be challenged on several counts. There is a right to trade and it cannot be restricted in absolute terms. Only reasonable restrictions can be imposed and applied, but a complete prohibition as restrictive as this was unnecessary,” said Anirudh Rastogi of TRA, a law firm that serves Bitcoin exchanges in India.
On the day after the RBI laid down its hammer on India’s cryptocurrency market, a hashtag campaign called #RBICantStopMe gained a small amount of traction through Twitter. A variety of tweets appeared from investors in the country expressing their concerns against the central bank’s move.
Naimish Sanghvi, the director of Coincrunch, threw his own two cents into the discussion by saying that people will resort to purchasing cryptocurrency through “incorrect means” as a result of the decision.
If exchanges manage to take their case to the highest court of the land, its decision will establish the legal precedent by which the rest of India’s government may proceed to treat the cryptocurrency phenomenon.