Citing SC Precedent, Karnataka High Court Quashes Criminal Case For Setting Up Bitcoin ATM

The Karnataka High Court has quashed and set aside the criminal case registered against founders of Unocoin company for setting up a Bitcoin ATM in Bengaluru in the year 2018. A single-judge bench of Justice H P Sandesh quashed and set aside the case registered against B V Harish and Sathvik Vishwanath who were charged by the Cybercrime police on October 23, 2018. The accused were charged by the police based on the circular issued by the Reserve Bank of India dated April 6, 2018. By the said circular the RBI had imposed restrictions on regulated entities such as banks and NBFCs from dealing with virtual currencies and from providing services to crypto businesses. Advocate Jaideep Reddy a/w Advocate Cyril Prasad Pais appearing for the accused relied on the judgment passed by the Supreme Court in the case of Internet and Mobile Association of India vs Reserve Bank of India, (2020) 10 SCC 274 in which the apex court has set aside the circular with regard to prohibition of virtual currencies. The public prosecutor also agreed with the submission made.