SC Removes Ban on Cryptocurrency Transactions in India

The Supreme Court has struck down a ban on trading of Virtual Currencies (VC) in India, which was imposed by the Reserve Bank of India (RBI) in April 2018. The ban did not pass the “proportionality” test. The test of proportionality of any action by the government must pass the test of Article 19(1)(g) of the Constitution, which states that all citizens of the country will have the right to practise any profession, or carry on any occupation or trade and business.

Daily Current Affairs Quiz 2020

The RBI order prohibited banks and entities regulated by it from dealing in VCs or providing services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/ sale of VCs.