Supreme Court Refuses To Stay RBI’s Virtual Currencies Circular

The Supreme Court today refused to stay Reserve Bank of India's circular that virtually banned banks and financial institutions from providing services to any individual or business dealing in digital currencies.

A three-judge bench of the Supreme Court headed by Chief Justice Dipak Misra, however, agreed to hear the petition moved by the Internet and Mobile Association of India on July 20.

According to the April 5 circular, RBI-regulated entities were asked to wind up relations with individuals and firms dealing in virtual currencies by July 5.

Apart from Internet and Mobile Association of India's plea, there are four other petitions filed in the Supreme Court and the Delhi High Court against the banking regulator's circular. There is also a Public Interest Litigation in the apex court related to the regulation of Bitcoins.