The policy body representing the interests of the Indian crypto industry has no plans to file a lawsuit against the Reserve Bank of India (RBI).
"We have no plans to file a contempt of court case," a spokesperson for the Internet and Mobile Association of India (IAMAI) told CoinDesk in reference to Coinbase (COIN) CEO Brian Armstrong, who had floated the idea of legal action against the Reserve Bank of India (RBI).
The Coinbase CEO sowed the seeds for a Supreme Court challenge by tweeting whether the RBI's "shadow ban" - where payment processors cut off local crypto exchanges - was a violation of a 2020 Supreme Court ruling. His tweet came after his company's ill-fated launch in India, which led to Coinbase leaving the country days later. Armstrong later pointed to "informal pressure" from the RBI as the reason for the exit.
"I don't want to comment on speculative observations made by individuals outside," RBI Governor Shaktikanta Das said later in an interview with CNBC TV 18.
Earlier in 2018, the RBI had effectively banned banks from supporting or participating in crypto transactions through a notification. However, the Supreme Court overturned that rule in early 2020.
For procedural reasons, legal sources say it is best for the original applicant, in this case IAMAI, to file a contempt of court action in the Supreme Court. If it is not the original petitioner, an individual entity seeking to file a contempt of court action must first demonstrate that it is an aggrieved party in the case. This is already a difficult procedural hurdle.
Sources indicate that IAMAI's position varies. While there is no disagreement among key players about IAMAI's collective decision to avoid litigation with the RBI, there are less influential players who believe that a legal challenge is the best course.
At least one person has suggested that legally, all the conditions are in place for a contempt of court challenge - which includes funding and approval of the court process - but at the moment the industry association (IAMAI) is unequivocally opposed to the idea.