On March 4, India’s Supreme court struck off a ban that prohibited cryptocurrency trading in the country. The ban was imposed in April 2018 by the Reserve Bank of India (RBI), effectively barring the buying and selling of cryptocurrencies like bitcoin and ethereum.
Today marks a historic moment for the cryptocurrency enthusiasts in the country as they can now have access to crypto without being restricted by the central bank. Moreover, banks in India can resume servicing crypto-centric companies.
Adoption Boost: India Officially Opens Its Doors To Crypto Trading
According to sources, a Supreme court bench comprising of justices Rohinton Nariman, S Ravindra Bhat, and V Ramasubramanian, today ruled in favor of petitioners who had publicly opposed RBI’s ban on cryptocurrency trading that was imposed almost two years ago.
At the time, the Central Bank had argued that cryptocurrencies posed a threat to financial systems. It had also noted the possibility of crypto being used for money laundering and other illicit activities. This noxious decision led to the shutting down of many crypto exchanges and other crypto-related businesses in the Asian giant due to dwindling volumes.
Nischal Shetty, the CEO of India-based cryptocurrency exchange Wazir told Reuters:
“Investments had stopped and start-ups were staying away from starting businesses in the crypto and blockchain space in India which will change now that the Supreme court has said that the RBI circular was unconstitutional.”
Today, the Internet & Mobile Association of India (IAMAI) argued before the Supreme Court that RBI’s blanket ban was “unconstitutional”. This is specifically because there is no official law vetoing them, hence trading virtual currencies is a “legitimate business” activity.
Crypto analyst The Crypto Dog was among the very first people to share the news with the Twitter crypto community.
The ruling today also means that cryptocurrency investors and businesses will be able to push against any strict regulations that the Indian government formulates in the future. Meanwhile, Supreme Court is hearing another case to determine regulations for virtual currencies.
Notably, Binance exchange recently acquired Wazir exchange. The crypto behemoth was swift to celebrate the ruling passed today by Supreme Court.
Today, the Supreme Court of #India tells Reserve Bank of India’s (RBI) to stop banning crypto businesses. Thanks to the hard work of industry players pushing for adoption,” tweeted Binance CEO, Changpeng Zhao.
Today’s Supreme Court ruling is a huge boost for cryptocurrency adoption in the second-most populous nation in the world. Investors and traders can now buy cryptocurrencies without risking being judged as criminals. Additionally, more crypto companies will be encouraged to set up shop in the country.