The Supreme Court quashed RBI’s 2018 circular over complete ban on banking services involving cryptocurrency. The top court called the ban ‘unreasonable’.
On January 28 Supreme Court reserved its judgment on pleas challenging a decision of the Reserve Bank of India which said that banking services will not be dealing with any transaction linked with cryptocurrency.
A three-judge Supreme Court bench headed by Justice Rohinton Nariman reserved the judgment after hearing arguments from both sides.
The Central Bank had issued a circular on April 6, 2018, that barred entities regulated by RBI to provide any “service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies”.
The Internet and Mobile Association of India (IAMAI) had approached the court challenging the RBI circular claiming that move has banned a legitimate business.
Members of IAMAI, who carry out cryptocurrency exchanges, also claimed that the ban will result in cryptocurrency trade being conducted through cash and other black market transactions.