Supreme Court allows crypto currency trading in India
The Supreme Court on Wednesday revoked the Reserve Bank of India (RBI) circular banning cryptocurrencies and bitcoin etc. in banking transactions. The Internet and Mobile Association of India had filed a petition in the Supreme Court challenging the RBI decision, on which the court has given this decision after 22 months. In this way, the Supreme Court has now allowed trade in cryptocurrencies.
During the hearing, IAMAI had said that the central bank’s move effectively put a restriction on legitimate business activities in cryptocurrencies, in response to which the RBI filed an affidavit in the court. RBI said that it has taken this step in view of the threat of money laundering and Terror funding through cryptocurrency.
Reserve Bank of India banned banks from providing services to crypto currency companies in 2018
A bench headed by Justice Rohinton Nariman gave this important decision on cryptocurrency. The bench also consisted of Justices Anirudh Bose and V Ramasubramanian. The Reserve Bank of India had banned the cryptocurrency business in the year 2018 by issuing a circular.
But today the Supreme Court has approved trade with virtual currency, also known as cryptocurrency. Now after this order of the court, a virtual currency such as Bitcoin can be legally transacted.
There are many types of virtual currency all over the world
On 6 April 2018, the Reserve Bank of India had banned banks from providing services to companies dealing with virtual currency. Currently, there are many types of virtual currencies all over the world. Of these, bitcoin has the highest value. On Tuesday, the bitcoin price was down 0.39 percent to $ 8815. Its market cap is $ 161 billion.
What is cryptocurrency?
Cryptocurrency is a currency that you cannot see. In simple words, you can call it Digital currency. No bank issues cryptocurrency. Only those who issue it control it. It is used in the digital world itself.
Earlier a picture of draft of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019 had gone viral in which it was proposed that 10 years in jail for those who buy and sell cryptocurrencies in the country. According to the draft, all those people will come who create cryptocurrencies, sell it, keep cryptocurrencies, send it to anyone or do some kind of deal in cryptocurrency would be punished. Those bill had provision to sentence those convicted to upto 10 years. But now the Supreme Court has lifted this ban.
