The Internet and Mobile Association of India (IAMAI) has taken the Reserve Bank of India to the Supreme Court, arguing that the regulator exceeded the powers it derives from the Banking Regulation Act when it banned banks from dealing in transactions associated with crypto-currencies in April 2018.

The Reserve Bank admits to banning initial coin offerings or ICOs and not allowing financial firms to set up funds with virtual currency as assets. However, it denies banning crypto-currencies outright. Using a clever form of words, it has stated in an affidavit that it has merely 'ring-fenced' entities regulated by it from being involved in activities that pose reputational, financial, legal and operational risks.

Money laundering appears to be the prime reason for the regulator's hostility to crypto-currencies. Recently it decried anything that allowed anyone to make anonymous payments abroad. Commentators expect the court to decide the case imminently.