The Indian cryptocurrency community has reacted quickly to the recent action of the Reserve Bank of India (RBI) against it, which ordered all regulated entities, including banks, not to provide services to companies that trade in instruments such as the Bitcoin.

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Both businessmen and everyday users appeared in various online forums and social networks to explain the follies in the central bank approach.

More than 16,000 Indians have already signed a change.org petition that was launched the same day as the RBI board. Addressed to the central bank, as well as the prime minister of India, the petition urges the country to adopt a framework that allows cryptocurrency innovation to flourish instead of trying to stifle it.

It points to failed attempts by cities around the world to block Uber as an example of why it would not work. The writers of the petition also point out the hypocrisy of the central bank for considering issuing its own digital currency.

The petition appeals to the Indian government's desire to improve the economic situation and asks the country not to alienate innovators with authoritarian regulations.

He points to the fact that the current CEOs of Microsoft and Google could have created local Internet companies if they had been given the opportunity, subtly warning that the next generation of technological talent could leave the country.

The writers also explain that the cryptocurrency exchanges in India are close to regulations and most of them already meet the strict standards of KYC. They ask the government and the central bank to open a dialogue with the companies to address any problem related to this matter.