The Supreme Court on Wednesday struck down the circular issued by the RBI in 2018 which prohibited banks from dealing with cryptocurrencies.
This said petition had been filed by the Internet Mobile Association of India challenging the RBI circular of 2018.
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The Central Bank had issued a circular in April 2018 restricting banks and other financial services organisations from trading in cryptocurrencies.
The Central Bank replying to the petition argued that only banks and other financial services were stopped from trading in cryptocurrencies and they weren’t illegal per se.
The petitioners then argued that neither the constitution nor the government had declared it to be illegal and they were like mere “casino” coins.
A bench headed by Justice Rohington Nariman and which also had Justices V Ramasubramanian and Ravindra Bhat struck down the circular issued by the RBI.
Cryptocurrencies such as “Bitcoin” are virtual currencies and aren’t regulated by any Central Bank.
In India, there are concerns that they can be used to carry out illegal activities and crimes such as terrorism and tax evasion.
Further clarification from the RBI is awaited post this order.
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