The RBI’s de-facto ban on cryptocurrency trading is being threatened by more companies joining together to file motions with the Delhi High Court.
After the Reserve Bank of India issued a statement instructing banks to stop doing business with cryptocurrency companies, the outrage extended far enough that the affected players in the market were thinking of taking the matter to court. A few weeks ago, executives from various companies operating in this sector spoke under the condition of anonymity about pushing this all the way to the supreme court, but nothing seemed to materialize since then.
On Saturday, Flintstone Technologies, a business services company that works with cryptocurrencies, petitioned the Delhi High Court to enact a stay against the RBI decision.
“When we started our business, we wrote to all relevant ministries and officials to ensure that our business model was in line with all statutory guidelines. But these arbitrary decisions by regulators and certain financial institutions have jeopardized our business interests. Today, we have been made to look guilty in front of our investors for no fault of ours,” wrote director Amit Lakhanpal in his petition.
As we find out from its filing, Flintstone Technologies operated with cryptocurrencies as Money Trade Coin, which sold its own tokens in the form of MTCX. The current value of a token is around $3, according to the company’s site. Filing for a legal stay on the decision at the Delhi High Court may have been a good decision, as it’s the same court that demanded an explanation from the RBI for its decision roughly two weeks ago.
It bears mentioning that this isn’t the first time that a company challenged the RBI’s decision in a court of law. CoinRecoil also submitted a writ petition to the Delhi HC on April 16.
However, Flintstone Technologies’ involvement signals the fact that other companies might be joining this fight in the near future. If the RBI gets enough pressure from local courts in India, there’s a chance that it may have to reverse its decision.