The Internet and Mobile Association of India has sought to defend trading in cryptocurrency here on Wednesday. The association has been representing several cryptocurrency exchanges and claimed in the Supreme Court that there should not be any issues in carrying out business activities in cryptocurrency amid the non-existence of a law banning these virtual currencies.
The association termed these business activities legitimate under Article 19(1) (g) of the Constitution.
RBI has no right to refuse access to banking channels to continue these business activities, added the association.
According to advocate Ashim Sood, cryptocurrencies are just like commodities and not currencies. Therefore, it falls outside the RBI’s jurisdiction to control the field.
Earlier in the year 2018, RBI had directed in a circular that all the entities controlled by it will not deal in VCs or offer services for enabling any individual or entity in dealing with VCs.
In 2019, a leading Indian trade organization Nasscom said it would not support an extensive ban on cryptocurrencies.
According to the report, Nasscom claimed that crypto projects might be tested in regulatory sandboxes before the launch. Nasscom also said that banning crypto will drive away legal business which is already pro-compliance.
Last year in November, the finance ministry defended the Apex Court’s ban on crypto entities from access to any banking services.
In India, a large number of crypto exchanges have been shut as RBI has banned banks in the country from offering crypto-related services to businesses.