The Supreme Court of India has struck down the controversial ban that the Reserve Bank of India (RBI) had put in place when it comes to banks dealing with firms related to crypto.
March 4, 2020 | AtoZ Markets – There is finally some good news out of India today. The long-reigning battle between the Indian regulator and the crypto exchanges is over as reports are emerging that the Supreme Court has ruled in favor of the digital asset businesses.
Community rejoices as India supreme court legalizes crypto trading
Furthermore, crypto exchange players in India are rejoicing the ruling as businesses will now be able to gain banking access. Industry observer ‘Crypto Kanoon’ was one of the first to break the news on crypto twitter:
Breaking:— Crypto Kanoon (@cryptokanoon) March 4, 2020
Supreme Court of India has struck off Reserve Bank of India's (RBI) banking ban against #Crypto. The Court held that RBI Circular dated 6th April 2018 is unconstitutional.
“We look forward to supporting our partners @wazirxindia and empowering 3 Billion people with the freedom of money.”
#Breaking: The Supreme Court of India has struck off the Reserve Bank of India's (RBI) banking ban against #Crypto!— Binance (@binance) March 4, 2020
We look forward to supporting our partners @wazirxindia and empowering 3 Billion people with the freedom of money.#IndiaWelcomesCrypto 🇮🇳 pic.twitter.com/iYtQ8FqTCV
Zebpay, however, recently relaunched in India. Commenting on the ruling, it wrote on Twitter today: “We will not stop here. We will continue to engage with the government to bring positive regulations through legislation.”
Notably, the report also added that the Supreme Court is separately hearing another case on regulations for cryptocurrencies. Undoubtedly, today’s judgment weakens the case for strict norms.
The Reserve Bank of India has been making every effort to ban cryptocurrency transactions by individuals and exchanges. Its campaign began in April 2018 with circular instructing banks and companies not to deal with digital assets.
Regulated exchanges and service providers that were already working within the industry were told to exit the ecosystem within three months.
Moreover, the Internet and Mobile Association of India had argued that trading in digital assets in the absence of a law banning them was a ‘legitimate’ business activity under the Indian constitution. The RBI, however, defended its actions taking the matter to the Supreme Court which procrastinated for months as the case dragged on.
According to Bloomberg a panel of three judges, headed by Justice Rohinton F. Nariman, agreed with petitions by cryptocurrency exchanges, startups, and industry bodies. Many people argue that the RBI isn’t empowered to ban crypto trading. Others say that its directive hadn’t adequately studied the matter.
As AtoZ markets reported, the RBI is planning to launch its own digital currency.
A landmark judgment
The ruling, however, is a huge boost for the crypto industry as a whole, especially in India where a massive population largely remains unbanked. There are now boundless opportunities for blockchain startups that can operate freely and without central bank oppression.
Furthermore, there was no immediate reaction from bitcoin prices at the time the news broke. At the time of the press, the flagship cryptocurrency is trading slightly above $8,700.
What do you think about the decision taken by the Supreme Court of India? Let us know your thoughts in the comment section below.