Big News : Green Signal to Cryptocurrency Trading, SC Lifts RBI Ban

New Delhi : npnews24 : The Supreme Court has given green signal to the trading of cryptocurrency. The court has removed the ban imposed by RBI. The Supreme Court has canceled the order of the Reserve Bank, which had completely banned bitcoin and other cryptocurrency in banking transactions. SC has accepted that this is a very strict step. In the petition filed in this case, the petitioners had said that the Indian government has not banned the cryptocurrency. But the RBI issued the order on its behalf.

In 2018, RBI issued a circular forbidding banks to trade in cryptocurrency. After this, the crypto currency exchange and some institutions had challenged in the Supreme Court against this circular of the Reserve Bank.

During the hearing, the central bank said in an affidavit filed in the Supreme Court that it had taken this step only to protect banks and other entities under its regulation from its risks.

What is Cryptocurrency
A cryptocurrency is a digital currency based on block-chain technology. Encryption technology is used in this currency. Through this technique, the transaction of currency is completely audited, which makes it very difficult to hack. This is the reason that the possibility of fraud in cryptocurrency is very less. The operation of cryptocurrency is independent of the central bank, which is its biggest drawback. The petition was filed in the Supreme Court by the Internet and Mobile Association of India to challenge the RBI circular.