Name of the Case : Internet and Mobile Association of India vs. Reserve Bank of India
Year of Judgement : 2020
Popular Name : -
Related Topic/ Issue : Ban on crypto currency trading
Related Article/ Schedule : 19
Supreme Court Judgement:
- Ban Declared Unconstitutional: The Supreme Court struck down the circular issued by the Reserve Bank of India (RBI) banning banks and financial institutions from dealing in virtual currencies (VCs).
- Reasoning: It deemed the circular illegal and unenforceable due to lack of evidence showing adverse effects on banks and financial institutions from VC exchanges. Additionally, it found the circular to violate the freedom to carry on trade under Article 19(1)(g).
- Constitutional Declaration: As a result, the Supreme Court declared the circular unconstitutional.
Impact of the Judgement:
- Ban Lifted: The judgement lifted the ban on cryptocurrency trading in India, allowing banks and financial institutions to resume engagement with the virtual currency industry.
- Regulatory Framework: It emphasized the need for a regulatory framework to govern cryptocurrency trading, highlighting concerns regarding investor protection and market integrity.
- Industry Attention: The ruling brought increased focus on the cryptocurrency industry in India, spurring discussions among stakeholders, policymakers, and regulators about developing appropriate regulations and guidelines.
