Justice Rohinton F. Nariman hinted yesterday (27 January, 2020) that the Supreme Court is likely to give verdict on Reserve Bank of India (RBI
) ban on banking services for cryptocurrency trade in two-three weeks
. The case has been going on since 2017. He said so while adjourning a separate case seeking regulatory regime for cryptocurrencies.
The RBI had in 2013 through a press release cautioned users of cryptocurrency. The RBI in 2017 again released a reminder cautioning users, holders and traders of virtual currencies again. Thereafter a ‘Inter Disciplinary Committee’
was set up by Ministry of Finance
to study cryptocurrencies and growth of virtual currencies. The Report of the committee was not made public and RTIs have also been denied as “it is of strategic importance”.
In 2018, the Finance Minister announced that cryptocurrency was not a legal tender. An RBI circular later that year declared prohibited dealing in cryptocurrency.
A bill entitled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019
” was drafted by an Interministerial Committee (IMC)
headed by former Secretary of the Department of Economic Affairs Subhash Chandra Garg.
The parliament had shelved this bill, awaiting the Supreme Court’s judgement, which was otherwise to be presented in the winter session. Author: Nandini Gandhi