Ashim Sood
Ashim Sood

"Supreme Court was faced with a balancing act", Ashim Sood on the Cryptocurrency judgment [VIDEO]

Shruti Mahajan

Ashim Sood says that the Supreme Court was faced with a balancing act in the instant case, where it was posed with questions pertaining to the RBI's powers to regulate virtual currency altogether.

The Court has gone ahead to uphold the powers of the RBI, but has also held that the rights of the citizens cannot be clipped disproportionately, Sood tells Bar & Bench.

[Watch the video here]

"We had challenged the very right of the RBI to regulate cryptocurrency and it is possible that the Supreme Court felt that in the merits of this case or facts of this case, maybe a correct interpretation could possibly disable the RBI, which is an important policy making arm, and perhaps wanted the RBI to be protected to that they protected the RBI but I think they have balanced it with protecting citizens' rights."
Ashim Sood

This is evident from the fact that the Court held that the RBI circular was being set aside on grounds of proportionality.

The Court said that when the RBI has found no adverse effect of cryptocurrency on any of the entities the Central Bank governs, and when virtual currency itself faces no ban in the country, the circular did not meet proportional standards.

Advocate Ashim Sood, who represented the Internet and Mobile Association of India (IAMAI) before the Supreme Court, speaks to Bar & Bench on the recent judgment concerning cryptocurrency in India.

In its verdict, the Supreme Court quashed a circular passed by the Reserve Bank of India (RBI) in 2018 barring banking and financial services from providing services for trading in virtual currency.

Bar and Bench - Indian Legal news