InvestorQ : With the Supreme Court revoking the bank on crypto-currencies (like Bitcoin) imposed by the RBI, does it mean that we can freely trade in Bitcoins now?
vaishnavi mhatre made post

With the Supreme Court revoking the bank on crypto-currencies (like Bitcoin) imposed by the RBI, does it mean that we can freely trade in Bitcoins now?

Answer
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diksha shah answered.
6 months ago


Back in 2018, RBI had stipulated that all regulated entities of RBI must not deal in crypto-currencies. This basically put banks and most financial institutions outside the ambit of crypto-currencies. In response to this order by the RBI, the Internet and Mobile Association of India (IAMAI) had filed a review petition with the Supreme Court on the grounds that all these crypto currency exchanges, that were IAMAI members, found the ruling by the RBI to be disproportionate. Supreme Court in its order on the petition declared the RBI order as being disproportionate as it would shut out crypto currency markets; including the genuine users. However, the RBI has in the past already clarified that it had not imposed any ban on crypto currencies as a product but had only its regulated entities not to facilitate transactions in these crypto currencies on security grounds. It will be interesting to see what are the next steps contemplated by the RBI in response to this ruling.