Supreme Court allows crypto currency lifts RBI ban. RBI has been cautioning its users since 2013 of crypto currencies as it considered crypto currency a digital means of payment which has to be nipped in the bud so the payment system in the country is not jeopardized. The regulatory body had, on April 6 2018, issued a circular directing that all the entities regulated by it shall not deal in virtual currencies or provide services to any person or entity for facilitating in dealing it.
The Internet and Mobile Association of India (IAMAI) had approached the top court objecting to a 2018 RBI circular that issued directions to the regulated entities not to deal with crypto currencies including bitcoins.
IAMAI members carry out crypto currency exchange amongst each other. After it’s ban IAMAI claimed that RBIs move had effectively banned legitimate business actively via virtual currencies.
Crypto Currency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units and verify the transfer of assets. Some of the most widely used and largest crypto currencies include: Bitcoin (BTC) Ethereum (ETH).
A crypto currency is a medium of exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information.
A three judge bench of Justices Rohinton Nariman, Aniruddha Bose and V Ramasubramanian pronounced the judgement. Detailed judgement will be out in the evening.
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