<p> The Supreme Court on Wednesday quashed a Reserve Bank of India (RBI) circular prohibiting the use of cryptocurrencies.</p>.<p>A three-judge bench presided over by Justice R F Nariman allowed a writ petition by the 'Internet & Mobile Association of India' against April 6, 2018 circular prohibiting banks and financial institutions from providing services in relation to cryptocurrencies.</p>.<p>The circular stated that the entities regulated by the RBI would be prohibited from providing any service, including transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies.</p>.<p>Cryptocurrencies are digital currencies, in which encryption techniques are used to regulate the generation of the currency units and verify the transfer of funds, operating independently of a central bank.</p>.<p>The association challenged the validity of the circular, contending that it was “arbitrary, unfair and unconstitutional“.</p>.<p>The top court had reserved its judgment in the matter in January, this year.</p>.<p>The RBI, for its part, contended it has performed its duty as the topmost regulator of the monetary policy in the country.</p>.<p>This is the second setback to the RBI from the top court of the country, which had quashed another circular related to non-performing assets.</p>
<p> The Supreme Court on Wednesday quashed a Reserve Bank of India (RBI) circular prohibiting the use of cryptocurrencies.</p>.<p>A three-judge bench presided over by Justice R F Nariman allowed a writ petition by the 'Internet & Mobile Association of India' against April 6, 2018 circular prohibiting banks and financial institutions from providing services in relation to cryptocurrencies.</p>.<p>The circular stated that the entities regulated by the RBI would be prohibited from providing any service, including transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies.</p>.<p>Cryptocurrencies are digital currencies, in which encryption techniques are used to regulate the generation of the currency units and verify the transfer of funds, operating independently of a central bank.</p>.<p>The association challenged the validity of the circular, contending that it was “arbitrary, unfair and unconstitutional“.</p>.<p>The top court had reserved its judgment in the matter in January, this year.</p>.<p>The RBI, for its part, contended it has performed its duty as the topmost regulator of the monetary policy in the country.</p>.<p>This is the second setback to the RBI from the top court of the country, which had quashed another circular related to non-performing assets.</p>
