Finally, a new path to cryptocurrency adoption has been unlocked, as the Indian Supreme Court on Wednesday ruled in favor of digital currency trading in the country, striking down a virtual ban imposed by the Reserve Bank of India (RBI).
Upon SC verdict today, Indian traders will now be able to freely trade Bitcoin (BTC) and other cryptocurrencies, without any restriction from the bank. Many people believe the development today is quite bullish and will start a new wave of adoption, following the population of the country.
The India Crypto Ban of 2018
Most of the crypto-related business has been to close down or move operations outside the country due to the cryptocurrency trading imposed by the central bank in a circular issued on April 6, 2018.
The circular warned that entities regulated by RSI shouldn’t engage or deal with digital currencies, or to offer services that will facilitate companies or individuals to deal or settle in cryptocurrencies. Regulated entities, who were already providing these services, were forced to discontinue relationships within three months.
The RBI claimed that the circular was aimed at protecting users, holders, and crypto traders from the risks associated with dealing with them. However, the unfriendly guidelines forced many crypto companies to cease operations in the country. Recently, the central bank again said the ban was meant to protect the integrity of their banking system. This was after the circular was challenged in SC by the affected entities.
The affected entities, which include crypto exchanges, were represented by the Internet and Mobile Association of India (IAMAI). They argued that cryptocurrency trading in the country was “legitimate,” since there wasn’t any existing law prohibiting them in the Constitution.
“The RBI could not have denied them access to banking channels to carry on such business,” IAMAI said.
While defending the circular, the central bank argued that despite the fact that, there wasn’t any existing law in India that formally banned cryptocurrencies, it warned the public against the risks inherent in them. Moreover, it has been consistently opposing any other payment system that will undermine the integrity of the banking system.
Hopefully, the Supreme Court verdict today will equally stop the Indian police from stopping or issuing warnings to the residents against dealing or trading cryptocurrencies.