Indian cryptocurrency exchanges likely to mount legal challenge in SC

New Delhi, Apr 09: The Indian cryptocurrency exchanges are considering to challenge the diktat of the RBI which prohibits entities under its regulation to work with companies which offer cryptocurrency services.

Startups like Unocoin, Coinsecure and Zebpay have expressed their reservations with the order and going by the statements they are considering to mount a legal challenge in the Supreme Court.

Coinsecure said that they were discussing the matter with industry stakeholders like Blockchain and Cryptocurrency Committee of India and the Internet and Mobile Association of India.

"We, along with the other industry players are in talks with IAMAI and BACC to see if they could help us in getting a hearing at the Supreme Court to see if stay orders are possible on the current decision of the RBI," Coinsecure chief operating officer Jincy Samuel told CoinDesk.

Samuel, though, acknowledged that the central bank's order will affect their services and investors will be left with options to move to an alt to alt trading or the cash market.

However, Zebpay CEO Ajeet Khurana said that no way this order is going to stop them. "We will continue to do what is best for our customers, and what is best for our country. Am studying the present situation and will react shortly. and we will emerge stronger (Sic)," he tweeted.

Though the company accepted that "A sudden disruption in banking services could affect our ability to service deposits and withdrawals."

The central bank later clarified that the specified time is three months.