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karnataka High Court Quashes Petition Against Founders Of Unocoin
Recently, the Karnataka high court quashed a criminal petition that was filed against Unocoin, a bitcoin company. The issue was regarding the setting up of a bitcoin ATM by Unocoin in Bengaluru in 2018. The case filed by BV Harish and Sathvik Vishwanath was set aside by Justice HP Sandesh. They were charged by the cybercrime police on Oct 23rd, 2018. This decision followed the precedent case of Internet and mobile association of India v. Reserve bank of India, where the supreme court had set aside a circular issued by the Reserve bank of India stating prohibition of virtual currencies on April 6, 2018, based on this circular the accused were arrested. The said circular placed prohibitions on regulated organizations from engaging with virtual currencies and offering services to crypto-businesses, such as banks and non-banking finance companies (NBFCs). Advocates Jaideep Reddy and Cyril Prasad Pais, arguing for the accused, relied on the judgment of the Supreme Court in the case of the Internet and Mobile Association of India vs Reserve Bank of India, in which the circular on the prohibition of virtual currency had been set aside by the apex court.
The claim per se was not opposed by the Public Prosecutor, who appeared for the State.
Accordingly, the Court admitted the claim, noting that since proceedings were launched against the petitioners on the grounds of the content of the circular, the same is liable to be annulled as the circular itself has been set aside.
The court observed that: considering the principles that have been laid down in the case of Internet and Mobile Association of India by the apex court wherein the circular issued by the reserve bank of India has been set aside. In the current proceeding also the case has been initiated against the petitioners based on the same circular that has been set aside so the proceeding against these petitioners is also to be set aside
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