SC Orders High Courts Across India To Not Entertain Pleas On RBI Circular On Cryptocurrencies

The Logical Indian Crew

May 24th, 2018 / 2:17 PM

Image Credit: Fintech Crypto News

The Supreme Court has barred all the High Courts across the country from entertaining any petition related to the Reserve Bank Of India’s (RBI) Circular issued on April 6 that prohibited dealings in cryptocurrencies such as the Bitcoin, as reported by the Business Standard.

The court passed its verdict while hearing to the pleas to direct the Centre to take necessary steps to restrain the sale and purchase of illegal cryptocurrencies that are used to trade and also, to ban all the websites, web links and mobile applications that are used for trading. It also demanded the Government to give advertisements and extensive publicity through media, informing and educating the public about the illegal dealings of virtual currencies.

The three-judge Bench  consisting Justices, AM Khanwilkar, DY Chandrachud and headed by Chief Justice Dipak Misra, also sought the assistance of Attorney General K K Venugopal in this matter and passed the judgement, where RBI had directed all the banks and financial institutions to freeze the bank accounts of those individuals and companies dealing in this illegal trade.

The bench also granted liberty to one of the petitioners to submit a representation to the competent authority in RBI within two weeks so that it can deal with it as per law. The court also heard two other cases of seeking transfer of pleas pending before the High Courts of Delhi and Calcutta.

The top court has adjourned the matter for further hearing on July 20.

Cryptocurrencies are digital or virtual currency in which the encryption techniques are used. They use decentralised control which does not come under the ambit of central banking systems or RBI. Cryptocurrency works on the blockchain technology which is a public transaction database and functions as a distributed ledger.

The first decentralised cryptocurrency, Bitcoin, was created in 2009, since then

1800 cryptocurrencies have been made. Two months ago, RBI had banned the sale or purchase of cryptocurrencies in India.


Contributors

Written by : Gitanjali Mangal

Edited by : Shraddha Goled

Share your thoughts..

Related Stories

“We Are Hopeful” Say Petitioners As SC Begins Fresh Hearings On Section 377

Cryptocurrency Transactions With Banks End; Now Exchange Possible Only With Peers

Cryptocurrency Scam Worth Billions Busted In Thane; Over 25000 People Duped

Cryptocurrency

Blockchain Gets New Boost In Budget 2018, Cryptocurrency Not A Legal Tender

Constitutional Bench

SC Sets Up 5-Judge Constitution Bench To Hear On 7 Crucial Cases: Aadhaar, Section 377; Four ‘Rebel’ Judges Excluded

Bitcoins

RBI Reiterates Warning About Using Bitcoins And Other Virtual Currencies

Latest on The Logical Indian

News

Maharashtra: Farmers Receive Recovery Notices For Rs 40-50 Lakh Loan Each Which They Never Took

News

With The Killing Of Two Sadhus, Violence Erupted In UP’s Auraiya; Two Policemen Suspended

Environment

This Top Level Drug Scientist Left His High Profile Job In US To Promote Organic Farming In His Village

News

Gauri Lankesh Murder Suspect Confesses To Involvement In Kalburgi Murder Plot

My Story

My Story: “I Was In Deep Sleep When I Felt Weird Sensation,”This Brave Girl Has Message For Those Who Have Suffered Abuse

News

Two Kids Break Piggy Banks To Donate Entire Money For Kerala Relief Fund

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.