SC lifts ban on cryptocurrency imposed by the Reserve Bank of India

DY365
DY365
Published: March 4,2020 04:05 PM
DY365

Story highlights

March 4, 2020: The Supreme Court on Wednesday lifted complete ban on cryptocurrency trade and quashed the 2018 circular of the Reserve Bank of India (RBI) which had prohibited

March 4, 2020: The Supreme Court on Wednesday lifted complete ban on cryptocurrency trade and quashed the 2018 circular of the Reserve Bank of India (RBI) which had prohibited banks and financial institutions from providing services with relation to cryptocurrencies.



Cryptocurrencies are digital currencies in which encryption techniques are used to regulate the generation of currency units and verify the transfer of funds, operating independently of a central bank.



While pronouncing the verdict Justice RF Nariman said, "We have allowed the writ petitions".



Last month, the RBI had said in the Supreme Court that it always opposed the use of any other payment modes and discouraged banks from using transactions involving cryptocurrencies.



The central bank argued that though there was no formal ban on cryptocurrencies under any law, the central bank consistently warned about the risks of dealing in virtual currencies.