The Supreme court of India issued a notification addressed to the Reserve Bank (RBI), the Finance Ministry and Tax service (GST), which argues that the decision of the RBI banning the cryptocurrency business violates the Constitution of India.
After 5 April, RBI had issued a circular which States that banks are prohibited to provide services to individuals or business that deals with cryptocurrencies, the Supreme court was sent a petition against the ban, which was signed by over 43,000 people.
Among them were the authors of the project CoinRecoil, who said that RBI violates the country’s Constitution, the principles of which state that everyone is equal before the law and all citizens have the right «to practise any profession and trade or business», and the regulator’s decision interferes with the commercial activities CoinRecoil as other similar companies.
According to the partner of the law firm Khaitan and Co Rashmi Deshpande, the actions of the RBI threatened by the growing cryptocurrency sector.
«The reserve Bank of India has still not provided the appropriate regulation of cryptocurrencies, which increases the uncertainty in relation to transaction processing and adversely affects the business of the cryptocurrency companies,» he said.
Investor and cryptoanalysis Tim Draper also extremely negative comments on RBI policy, calling its refusal to recognize cryptocurrency as a legitimate method of payment «a huge mistake».