Supreme Court upholding RBI ban on cryptoexchanges: How RBI lost the match in the last over

My piece in Moneycontrol where I review the recent Supreme Court (cant locate on the website now) ruling on RBI’s circular which led to death knell of cryptoexchanges and crypto trading in India.

The Reserve Bank of India must be really edgy this week. The week started with the central bank being worried over the possible impact of coronavirus on the Indian economy and financial markets. The central bank had to issue a statement saying it “stands ready to take appropriate actions to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability”.

Just when things would have calmed a bit, came the news that the Supreme Court has struck off a Reserve Bank circular which banned virtual currencies (VC) in April 2018. This marks the second case in less than a year of the Supreme Court ruling against a central bank circular/policy. The first case was of a circular released in February 2018 which allowed banks to file defaulting firms under the new bankruptcy code.

But it’s this case of virtual currencies that is really interesting. In SC’s own words, the case had a “nail biting finish”. In April 2018, the RBI had directed the entities regulated by it to not do business with firms engaging in VCs and exit in case they have been in such a business relationship.

More in the piece…

Obviously, the edginess continues with decision on Yes Bank..phew…

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