New Delhi: The Supreme Court on Wednesday allowed trading in cryptocurrency, overruling an earlier ban imposed by the Reserve Bank of India (RBI) on dealing in virtual currencies such as Bitcoin.
The Internet and Mobile Association of India (IAMAI) had approached the Supreme Court against a 2018 RBI Circular which directed that the RBI regulated entities to not deal with the Cryptocurrencies.
A 3-judge bench led by justice RF Nariman and comprising justices S Ravindra Bhat and V Ramasubramanian pronouncing the verdict said the ban was disproportionate.
Cryptocurrencies are a stateless digital currency in which encryption techniques are used for trading. These currencies operate independently of a central bank like the RBI, rendering it immune from government interference.
The Reserve Bank of India (RBI) in 2018 told the Supreme Court that allowing dealings in cryptocurrencies like Bitcoins would encourage illegal transactions and it has already issued a circular prohibiting the use of these virtual currencies.