Numerous debates have spun around the prevailing issue of cryptocurrencies including the authenticity and the protection of crypto currency due to the high risks associated with it. A Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. the first decentralized form of concurrency is Bitcoin, which witnessed an immense surge in the value of such currency leading to questioning the veracity of its protection and safety features. The RBI Circular dated 6th April 2018 clearly and specifically barred trade in cryptocurrencies. The circular further stated as follows:
“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/sale of VCs. Regulated entities which already provide such services shall exit the relationship within three months from the date of this circular.”
The present Writ Petition was filed seeking transfer of matters already pending before the Delhi and Calcutta High Court and the Supreme Court Bench of Chief Justice of India Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud have kept the matter for further hearing.
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