SC Asks HCs Not To Entertain Petitions Relating To RBI Circular Prohibiting Virtual Currencies [Read Order]

The Supreme Court has asked high courts across the country not to entertain any petition relating to the circular issued by the Reserve Bank of India on “Prohibition on dealing in Virtual Currencies’.

A bench headed by the Chief Justice of India Dipak Misra issued this order while staying further proceedings pending before Delhi and Calcutta high courts.

The court was hearing a writ petition filed by Siddharth Dalmia and transfer petitions seeking transfer of cases pending before Delhi and Calcutta high courts. The bench directed the registry to register transfer petitions and to issue notice and tag them with the writ petition.

The court has posted the matter for further hearing on 20^th July 2018.

RBI Circular

The Reserve Bank of India had issued a circular cautioning users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated with dealing with such virtual currencies.

The circular, issued on 6^th April 2018, reads: “In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/sale of VCs. Regulated entities which already provide such services shall exit the relationship within three months from the date of this circular.”

Read the Order Here