Cryptocurrency Trading is Allowed by Supreme Court in India
In April 2018, The Reserve Bank of India (RBI) had directed all entities regulated by it to not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling those, thus virtually banning cryptocurrency trading in India. Entities were asked to end associated services, including transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies, within three months.
A three-judge bench held the 2018 circular as unreasonable and disproportionate and found that the complete prohibition as bad in law and disproportionate to the objectives sought to be achieved by RBI as a regulator. The judgment will likely bring a regulatory regime for cryptocurrency in India instead of a complete ban.
After RBI's 2018 directive, the Internet and Mobile Association of India, representing various cryptocurrency exchanges, had filed a petition with the apex court arguing 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 added.
The central bank defended its circular insisting that it had always been consistent in its opposition to allowing other payments systems and undermining the integrity of the banking system. It also said that it had not directly banned virtual currencies and restrictions were only imposed on entities regulated by RBI.
The central bank defended its decision on prohibition as a measure to protect these entities from activities that could pose as reputational, financial, legal and operational risks, including terror financing and money laundering.
Source : Goodreturns.in
Trending Blogs
Cryptocurrency Exchange
NOWPayments Clone Script: Simplifying Cryptocurrency Transactions for Businesses
In virtual technology, cryptocurrency payments are transforming the way businesses handle transactio ...
Cryptocurrency Exchange
Gemini Clone Script: Fast-Track Your Crypto Exchange Development
In the ever-evolving world of cryptocurrencies, launching a secure and user friendly exchange platfo ...
Cryptocurrency Exchange
SimpleSwap Clone Script – Start a Hassle-Free Crypto Swap Platform
The cryptocurrency industry has witnessed an exponential demand increase for instant and seamless cr ...
Cryptocurrency Exchange
MEXC Clone Script: A Ready-Made Solution for Crypto Entrepreneurs
The cryptocurrency marketplace is booming, and with it comes the ever-growing demand for modern and ...
Cryptocurrency Exchange
7 Best Cryptocurrency Business Opportunities to Launch in 2025
Cryptocurrency continues to redefine industries and liberate exceptional possibilities for agencies ...
Cryptocurrency Exchange
8 Leading Crypto Trading Bots to Improve Your Trading Strategy in 2025
Enhance your trading strategy with the top 8 crypto trading bots of 2025. These cutting-edge tools o ...
Cryptocurrency Exchange
Top 10 Reasons to Invest in a Cryptocurrency Wallet Development Business in 2025
Discover the top 10 reasons why investing in a cryptocurrency wallet development business in 2025 is ...
Cryptocurrency Exchange
Must-Have Features for a Successful Crypto Loan Platform in 2025
Dive into the essential features driving the success of crypto loan platforms in 2025. From robust s ...
Cryptocurrency Exchange
Top 5 Banks Leading in Crypto and Blockchain Investments
Discover how the top 5 global banks, including JPMorgan and Goldman Sachs, are revolutionizing finan ...
Digital Transformation
What Is Digital Transformation and Why Does It Matter Today?
Digital Transformation involves integrating digital technologies into business operations to improve ...
