RBI seeks to ban usage of cryptocurrencies; says it would encourage illegal transactions

Must Read

Sanju Samson to replace Shikhar Dhawan in T20 series against WI

Sanju Samson will replace injured Indian opener Shikhar Dhawan in the T20s series against West Indies starting from next...

Supreme Court lashes out on Centre & Delhi govts for Rising Pollution

The Apex Court of the Country, the Supreme Court on Monday lashed the Central and State Government for their...

Harbhajan Singh wishes BCCI Prez Sourav Ganguly to change Selection Panel

The Indian off-spinner Harbhajan Singh on Monday urged Sourav Ganguly, President of BCCI (The Board of Control for Cricket...
Business news author and curator at The Indian Wire.

The Reserve Bank of India (RBI) today told the Supreme Court that allowing dealings in cryptocurrencies like Bitcoins would encourage illegal transactions, saying that cryptocurrencies are “stateless digital currencies” which have inbuilt encryption techniques, and that these currencies operate independently of a central bank like the RBI, “rendering it immune from government interference”. The RBI has already issued a circular prohibiting use of these virtual currencies on 6 April 2018.

Previously on 3rd July, the Supreme Court refused to stay an RBI circular prohibiting banks and financial institutions from providing services in relation to cryptocurrencies, after hearing a plea filed by Internet and Mobile Association of India, which called the circular “arbitrary, unfair and unconstitutional”.

Shyam Divan, appearing on behalf of the RBI informed a bench headed by Chief Justice Dipak Misra that a committee has been set up by the Centre to deal with the issues relating to cryptocurrencies, and that the matter ‘requires a final and early decision from the top court’.

The RBI and the Central government also sought three weeks from the bench for filing their responses to petitions on the issue. The bench granted time to the Centre and the RBI for filing responses and fixed the petitions for a final hearing which will take place on September 11.

While some petitions challenge the use of virtual currencies, alleging that they pose grave dangers and must be banned from trading, a few other petitions have challenged the RBI circular which prohibits the use of virtual currencies.

One of the petitions filed by Siddharth Dalmia and Vijay Pal Dalmia sought a direction to the Centre to take steps to restrain sale and purchase of illegal cryptocurrencies like Bitcoins, which were being traded openly for “illegal activities” like funding terrorism and insurgency.

The plea has sought direction to the Centre to declare as illegal and ban all illegal virtual currencies like Bitcoins, litecoins, bbqcoins, dogecoins etc and investigate and fix accountability on the sale and purchase of virtual currencies till date and prosecute the offenders. It has also sought to ban and declare websites, web links and mobile applications which are being used to buy, sell or deal in any manner with illegal virtual currency as illegal.

The same plea has also asked the government to inform and educate the public in India about the illegalities involved in sale, purchase and dealing of illegal virtual currencies give advertisements and wide publicity through the media.


Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Sports discovery space Sportido bags undisclosed amount of funding from IP Ventures, others

Sportido, a sports discovery startup, has bagged an undisclosed amount in its second round of funding from IP Ventures,...

Sequoia India, Hillhouse Capital, others infuse $70 million in used car platform CarDekho through series D round

CarDekho, a platform to sell and buy used cars and an automobile subsidiary of Girnar Group, has bagged $70 million (approx INR 498 crore) in series...

Omidyar Network, Eight Roads Ventures, others invest $6 million in used bikes startup Credr

Credr, a marketplace for used bikes, has secured $6 million (approx INR 38 crore) in an investment round from Omidyar Network, Eight Roads Ventures,...

PUBG mobile to get 90FPS support soon

Qualcomm announced its next-generation processor that will support 5G, 200 MP camera, and 144Hz displays. The new processor will have a new function that...

Opera v55 for Android brings Super Dark Mode

Opera is the oldest mobile browser, we have used it on simple keypad mobile to Android smartphones. It used to be the first choice...
- Advertisement -

More Articles Like This