The Supreme Court on Wednesday allowed dealing in cryptocurrency, lifting an earlier ban imposed by the Reserve Bank of India (RBI) on trading in virtual currencies such as Bitcoin.
“Trading in cryptocurrencies now will be allowed,” the top court noted. 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.
The RBI had stated that virtual currencies “raise concerns of consumer protection, market integrity and money laundering,” which is why banks were asked not to deal with crypto-related businesses.
This circular was challenged by an industry group Internet and Mobile Association of India (IMAI) before the Supreme Court.