New Delhi, March 4: The Supreme court on Wednesday allowed trading in cryptocurrency, thus cancelling the 2018 ban imposed by Reserve Bank of India (RBI).  Pronouncing the verdict, the three-judge bench of the apex court said the ban was 'disproportionate'. According to an ANI update,  three-judge Bench of Justice Rohinton Fali Nariman, Justice S Ravindra Bhat and Justice V Ramasubramanian allowed the plea of the Internet and Mobile Association of India (IAMAI) challenging RBI’s 2018 circular that directed regulated entities to not deal with cryptocurrencies. Cryptocurrencies to Remain Illegal in India, RBI Says Can't Recognise Bitcoins Under the Current Legal Regime.

The Internet and Mobile Association of India (IAMAI), whose members include cryptocurrency exchanges had approached the top court objecting to a 2018 RBI circular directing regulated entities to not deal with cryptocurrencies. The RBI in 2018 clarified on its stand and said that it can't recognise bitcoins under the current legal regime. Reserve Bank of India had further said that virtual currencies are neither money nor currency. They can’t even be considered as a valid payment system.

The RBI had issued the circular that barred RBI-regulated entities from "providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies".

(The above story first appeared on LatestLY on Mar 04, 2020 11:22 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).