New Delhi (NVI): The Supreme Court today allowed dealing in cryptocurrency, quashing an earlier ban imposed by the Reserve Bank of India (RBI) in 2018 on trading in virtual currencies such as Bitcoin in the country.
The top court’s order followed a plea by the Internet and Mobile Association of India (IMAI) objecting to the RBI ban.
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.
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 RBI had stated that virtual currencies (VCs) (cryptocurrencies and crypto assets) “raise concerns of consumer protection, market integrity and money laundering.” In view of the associated risks, banks were asked not to deal with crypto-related businesses.
The central bank defended in the Supreme Court its 2018 circular insisting that it had always been consistent in its opposition to allowing any other payments systems and undermining the integrity of the banking system.
