Supreme Court Judgement on Cryptocurrency

Cryptocurrency is encoded data which is indicated as a currency. It is associated through the network person to person, also known as the blockchain. It is a combination of different steps such as buying, selling and transferring. They are the opposite of money as the government does not legally issue them. In a powerful judgement, the Supreme court judgement on Cryptocurrency suppressed the ban inflicted by the Reserve Bank of India. The central bank also made a verdict on Cryptocurrency to make it prohibited from trading in India as per the report shown from the circular launched in April 2018.

A brief analysis of the supreme court Judgement on Cryptocurrency

In the Supreme court’s judgement on Cryptocurrency in 2018, during the judgement on RBI versus mobile association, the Supreme court countermanded the circular launched by RBI. RBI does not have the right to restrict the trading in Cryptocurrency, as stated by the Supreme court. The Supreme court verdict on Cryptocurrency was fair because the court believed banning Cryptocurrency would snatch the rights of people to do trading, which is legal according to the law. During the suppression of the RBI circular by the Supreme court, the court mentioned that there are no such legal rules for banning Cryptocurrency trading. In future, in case the parliament becomes ready to ban Cryptocurrency, the Supreme court on Cryptocurrency would also not behave in the same way. The Supreme court also requested the government to make their side clean on the Cryptocurrency matter. The Supreme court judgement on Cryptocurrency had the main reason as the court believed that Cryptocurrency had not affected and caused any damage to the banks under RBI. The Supreme Court on Cryptocurrency had a certain mindset that RBI had not made a good decision over the measures for banning the Cryptocurrency. The court also decided to test the real meaning behind Cryptocurrency.

Verdict on Cryptocurrency

The Supreme court judgement on Cryptocurrency made the court dishonour the decision made by the Reserve Bank of India on Cryptocurrency trade by indicating them as legal trading by law. This decision made by the Supreme court stopped the ban on virtual currency trading like Cryptocurrency and bitcoin. The Supreme court judgement on Cryptocurrency has several reasons behind them. The decision made by the Supreme court on Cryptocurrency was quite fair and based on the rights of the people to trade in India. Cryptocurrency is made legal in India, but it is still seen as a double-sided sword which has both good and bad outcomes. Thus the court also believes that in future, they may ban Cryptocurrency if the parliament passes any decision regarding this. With Cryptocurrency, a person can transact money in real-time without any limitations over the transactions. But a person cannot have access to know about the KYC of the customers, which can cause problems while tracking the payment. Cryptocurrency can also be consumed through illegal purposes where account tracking becomes a problem.

Cryptocurrency can also have a high risk of cybercrimes as it does not provide accurate information about the customers. So the criminals can easily target the person without getting caught. Due to such negative effects of Cryptocurrency currency Reserve Bank of India decided to ban it. Still, the supreme court’s judgement on Cryptocurrency lifted the ban of virtual currency like Bitcoins and Cryptocurrency as it mentioned them as legal trading. It was made that the imposing of virtual currency was not an equal measure and thus did not have the proper reason for restricting based on the constitution.

Moreover, the Supreme court mentioned that the Reserve Bank of India did not have the required data about the Cryptocurrency that would help them to ban it. The data did not have any bad impact on the previous economy. Due to the lack of negative effects caused by Cryptocurrency, the supreme court did not follow the Reserve Bank of India’s decisions. The Supreme court believed that the virtual currency also has certain foundational qualities, and it has not harmed the banks in India. According to the law, the Supreme court judgement on Cryptocurrency mentioned that virtual currencies like virtual currency and Bitcoins were legal to be used in trading.

Conclusion

As mentioned above, we can understand the decision of the Supreme court to lift the ban on Cryptocurrency imposed by the Reserve Bank of India. On May 31 Reserve Bank of India requested banks not to mention the orders made in 2018 as an excuse to turn down the services for the customers involved in Cryptocurrencies. They also mentioned that their circular was overturned by the Supreme court, making it unsuitable for the banks to mention the circular anymore. It can also be seen that the Supreme court has certain beliefs over Cryptocurrency and Bitcoins; the court thinks of them as legal trading in India.