- Apprentice Lawyer
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.
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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.