The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

The policy body that represents the interests of India's crypto industry is not planning to file a legal challenge against the Reserve Bank of India (RBI).

"We have no plans to file a contempt of court challenge," a spokesperson of the Internet and Mobile Association of India (IAMAI) told CoinDesk regarding Coinbase (COIN) CEO Brian Armstrong raising the idea of a legal move against the Reserve Bank of India (RBI).

Armstrong's tweet

The Coinbase CEO sowed the seed of a Supreme Court challenge by tweeting to ask if the RBI's "shadow ban" – in which payment processors cut off local crypto exchanges – was a violation of a 2020 Supreme Court ruling. His tweet came following his company's ill-fated India launch, which led to Coinbase exiting the country days later. Armstrong later pointed to "informal pressure" from the RBI as reason for the exit.

"I would not like to comment on speculative observations made by individuals outside," RBI Governor Shaktikanta Das later said in an interview with CNBC TV 18.

Beginning in 2018, the RBI had effectively banned banks through a notification from supporting or engaging in crypto transactions. The Supreme Court, however, overturned that rule early in 2020.

Procedural hurdles

Procedurally, legal sources say a contempt of court challenge is technically best filed by the original petitioner in the Supreme Court, which in this case would be the IAMAI. If it is not the original petitioner, then an individual entity seeking to file a contempt of court is required to first prove how it is an aggrieved party to the case. This itself is a tricky procedural hurdle.

Sources have indicated divergent views regarding the IAMAI's position. While no difference of opinion exists between major players on the collective decision of the IAMAI to avoid a legal battle against the RBI, there are less-influential players who believe a legal challenge is the best way forward.

At least one person has indicated that, legally, all the ducks are in a row to file a contempt of court challenge – which includes funding and legal process approvals – but, for now, the industry body (IAMAI) is unequivocally against the idea.

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Trading veteran Peter Brandt says Bitcoin price can turn bullish under one condition

Trading veteran Peter Brandt says Bitcoin price can turn bullish under one condition

Renowned chartist trader Peter Brandt has identified one condition that could confirm a bullish reversal for Bitcoin. Brandt believes Bitcoin could now recover from its 70% drawdown in the worst bear market for the leading crypto of all time. 

More Bitcoin News

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

Brad Garlinghouse, CEO of Ripple, has affirmed a move outside the US if the payment giant loses the SEC vs. Ripple lawsuit.

More Ripple News

Where traders can buy Avalanche's AVAX price before the next leg up

Where traders can buy Avalanche's AVAX price before the next leg up

AVAX price has been on a roll since it bottomed on June 19. Since then, the altcoin has managed to provide traders with massive gains. The recent retracement suggests that Avalanche bulls are planning their next leg-up.

More Avalanche News

If Dogecoin price does this, a 30% rally is a no-brainer

If Dogecoin price does this, a 30% rally is a no-brainer

Dogecoin price is at a crucial point in its journey, which could either trigger a minor swing or a pullback that will prepare it for another massive leg-up. Therefore, investors need to pay close attention to DOGE and its upcoming corrections.

More Dogecoin News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP