The Supreme Court on Wednesday struck down the curb on cryptocurrency trade in India put up by the RBI.
ETNow reported quoting:
“SC rules curb on crypto currency trade illegal,” the report said while adding that the order lifted ban on trading in virtual currency, cryptocurrency and bitcoins.
Bitcoin, the most valued cryptocurrency in the world, was down 0.39 per cent at $8,815. The market cap of the currency stood at $161 billion.
The Reserve Bank of India had virtually banned cryptocurrency trading in India as in a circular issued on April 6, 2018, it directed that all entities regulated by it shall not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling those.
Regulated entities that were already providing such services were told to exit the relationship within three months. The RBI had earlier issued circulars cautioning users, holders and traders of virtual currencies, including bitcoins, regarding various risks associated in dealing with such virtual currencies. The April 6 circular was later challenged in the top court.
The Internet and Mobile Association of India, representing various cryptocurrency exchanges, had argued that trading in cryptocurrencies in the absence of a law banning those was a “legitimate” business activity under the Constitution. The RBI could not have denied them access to banking channels to carry on such business, it said.
The central bank defended in the Supreme Court its 2018 circular maintaining that it had constantly been unswerving in its disapproval to allowing any other payments systems and undermining the veracity of the banking system.
It contended that though there was no formal ban on cryptocurrencies under any law in presence in India, it had unswervingly been cautioning all those trading with virtual currencies of the risks integral to them.