India’s top court finished hearing petitions challenging the Reserve Bank of India’s (RBI) 2018 circular, which advised banks to refrain from dealing in cryptocurrencies. Last month, the Supreme Court of India heard arguments from both sides, but is yet to give a judgment, reported Bloomberg Quint.
The RBI has issued several circulars over the past few years, directing financial institutions not to deal in virtual currencies or provide services to individuals or entities for settling such transactions. The central bank said the circulars were in part to ensure that the banking system of the country was not compromised by an alternate payment system, such as Bitcoin, which has proven to be highly volatile.
The legal action was initiated by the Internet and Mobile Association of India, representing various cryptocurrency exchanges. The petitioners argued that in the absence of a formal law banning the trade of cryptocurrencies, businesses such as crypto exchanges were within their right to operate freely. They claim the RBI should not deny them access to banking channels to conduct business, reported the Economic Times.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
