Internet and Mobile Association of India v. Reserve Bank of India, (2020) 10 SCC 274

The decision of the Internet and Mobile Association of India vs. Reserve Bank of India case is one of the milestones in the process of development of cryptocurrency regulations in India. The case was initiated due to the disagreement concerning the circular of 6 April 2018, issued by the Reserve Bank of India and banning any banks and financial institutions supervised by the RBI to render services to firms working with virtual currency. The court evaluated the limits of the power of the RBI and the constitutionality of the circular. Following the doctrine of proportionality, the court found out that despite the fact that RBI had the right to regulate virtual currencies, the limit provided for in the disputed circular was too restrictive as there was no proof of the damage caused to regulated firms by virtual currency transactions.