The Supreme Court on Wednesday repealed the Circular of the Reserve Bank of India, which completely bans cryptocurrencies and bitcoins, etc., in banking transactions. The Reserve Bank of India had issued a circular in 2018 banning cryptocurrencies in banking transactions. The RBI had issued a circular banning regular institutions from serving cryptocurrency-related persons or activities. Thereafter, petitions were filed in the Supreme Court to challenge the RBI decision, on which the court has given the verdict. Thus, the Supreme Court has now allowed trade in cryptocurrencies. A petition was filed in the Supreme Court by the Internet and Mobile Association of India to challenge the rbi circular banning cryptocurrencies. During the court hearing, IAMAI had said that the central bank's move has stopped legitimate business activities in cryptocurrencies. In response, an affidavit was filed by the Reserve Bank in the court. The central bank said it had taken this decision because of the threat of money laundering and terrorist financing through cryptocurrencies.

10-year jail term for buying and selling cryptocurrencies in India

The draft ban on cryptocurrencies and the official Digital Currency Bill, 2019 proposed that those buying and selling cryptocurrencies in the country were jailed for 10 years will be punished. According to the draft, it will bring all those who prepare cryptocurrencies, sell it, keep cryptocurrencies, send someone or deal with cryptocurrencies. In all these cases, those found guilty were sentenced to imprisonment for up to 10 years. But now the Supreme Court has lifted the ban.

RBI banned it in 2018

The Reserve Bank of India had issued a circular in the year 2018 to ban the cryptocurrency business. But today the Supreme Court has approved the trade from the virtual currency, also known as cryptocurrencies. Now, after this court order, the virtual currency such as Bitcoin can be legally transacted.

There are many virtual currencies all over the world

On April 6, 2018, the Reserve Bank of India had banned trade in virtual currency. At present, there are many virtual currencies all over the world. Of these, Bitcoin has the highest value. On Tuesday, Bitcoin fell 0.39 percent to $8815. Its market cap is 161 billion dollars.

What is Cryptocurrency?

Cryptocurrency is a currency you cannot see. In simple terms, you can call it a digital rupee. No bank issues cryptocurrencies. Only those who issue it control it. It is used in the digital world.

Read also: India World Heritage sites: Must visit and most fascinating places to travel

Coronavirus outbreak: Simple precautions that will help you decrease the risk of infection from COVID-19

Are you ready to win up to 1 crore rupees? Indian government starting GST lottery scheme? Read here

Image credit: techcrunch