SC allows cryptocurrency trading, quashes RBI ban

NEW DELHI : The Supreme Court on Wednesday lifted the ban imposed by the Reserve Bank of India (RBI) on virtual currency trading, including cryptocurrencies. The three-judge bench headed by Justice Rohinton Nariman quashed the central bank’s order while hearing petitions challenging the April 2018 circular imposing the ban on financial service providers.

The bench, also comprising Justices S. Ravindra Bhat and V. Ramasubramanian, allowed the petition on the “ground of proportionality”.

“When the consistent stand of RBI is that they have not banned virtual currencies and when the government of India is unable to take a call despite several committees coming up with several proposals, including two draft bills, both of which advocated exactly opposite positions, it is not possible for us to hold that the impugned measure is proportionate,” said the top court.