1 August 2026
India’s Supreme Court Allows Trading In Cryptocurrency, Suppressing RBI Curb
India’s Supreme Court has now allowed the trading of cryptocurrency in the country. The Reserve bank of India had banned virtual currencies trading in the country.
The Reserve Bank of India had issued a circular in April 2018 in which it outlawed all kinds of cryptocurrencies in India. This has not only restricted financial institutions regulated by RBI from trading in cryptos but prohibited them from providing services to any third-party individual or entity dealing in virtual coins.
The duration of three months was given by RBI to the financial institutions serving people/entities dealing in virtual currencies to close down their operations. The Central Bank has also warned users and traders of Cryptocurrency about the impact associated with illegal trading of cryptocurrencies.
Many petitions were filed challenging RBI’s ban to which the Supreme Court of India has declared it to be an illegal ban, setting it aside completely. The removal of the ban will result in enabling the trading of cryptocurrencies for RBI-regulated financial institutions, private entities, and individuals. This could also result in many crypto exchanges legally operating in India.
The verdict on cryptocurrency trading was given by the three-judge bench headed by Justice Rohinton F. Nariman. The decision was made after hearing petitions filed by several cryptocurrency exchanges, start-ups, and industry bodies that needed bank services to continue dealing in digital currencies.
This is a big decision taken by the Supreme court as it will surely boost businesses/investors dealing in cryptocurrencies in Asia's third-largest economy.
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