SC allows trade in cryptocurrency, quashes RBI curb

New Delhi: The Supreme Court Wednesday allowed banks and financial institutions from providing services related to cryptocurrencies by setting aside the RBI's 2018 circular which had prohibited them.

A three-judge bench, headed by Justice R F Nariman, said the Reserve Bank of India (RBI) circular is liable to be set aside on the ground of "proportionality".

"Accordingly, the writ petitions are allowed and the circular dated April 6, 2018 is set aside," said the bench, also comprising justices Aniruddha Bose and V Ramasubramanian.

"When the consistent stand of RBI is that they have not banned VCs (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," the bench said in its 180-page verdict.

Meanwhile, Finance Minister Nirmala Sitharaman on Wednesday said she will go through the Supreme Court order allowing banks and financial institutions to provide services related to cryptocurrencies.