SUPREME COURT ON CRYPTOCURRENCY Recently, the Supreme Court struck down a circular of Reserve Bank of India, which bans financial institutions from enabling deals in digital or cryptocurrencies. The ban that came into force in April 2018, had crippled the Indian cryptocurrency industry. This ban was challenged by the Internet & Mobile Association of India (IAMA) in the Supreme Court, the IAMA pleaded that dealing and trading in cryptocurrency was a legitimate business activity and that the RBI did not have jurisdiction over it as these assets could be classified as commodities rather than currency. The Supreme Court held that an outright ban on virtual currencies would be a disproportionate measure by the government since many less intrusive measures are available. It is worth remembering that virtual currency transactions do not operate in a complete regulatory vacuum. The Supreme Court also held that the ban was unconstitutional. It is in violation of the freedom to carry on trade guaranteed by Article 19(1)(g) of the Indian Constitution. The Supreme Court sets aside the circular on the ground of proportionality as court term the circular as an extreme step. The court also directs the RBI to release the funds in the accounts frozen after the notification. Reddy & Reddy Law Firm has a forte in handling matters related to banking-finance. They have an experienced team of lawyers ready to assist in all your disputes