Dhaka, March 4 -- The court allowed a plea challenging the Reserve Bank of India's circular which barred banks from trading in cryptocurrency on Wednesday.

The court order lifted the ban on trading in virtual currency, cryptocurrency and bitcoins.

Bitcoin, the most valued cryptocurrency in the world, was down 0.39 per cent at $8,815. The market cap of the currency stood at $161 billion.

The Reserve Bank of India had virtually banned cryptocurrency trading in India in 2018 and directed all entities regulated by it not to deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling those.

Regulated entities that were already providing such services were told to exit the relationship wi...