Crypto trading returns to India as the Supreme Court lifts the ban
- India's Supreme Court finally ruled regarding the matter of cryptocurrency trading within the country.
- The ruling resulted in lifting the crypto ban, finally returning the crypto industry in India back to its full capabilities.
- The ban against trading was active for two years, and it prevented crypto businesses from operating in India, as there were no banks or financial institutions allowed to work with such firms.
The crypto hearings are finally done in India, and the country’s Supreme Court has brought a decision — the two-year-old ban on digital currency trading introduced by the central bank is to be lifted. The country’s crypto community has called the decision nothing less than ‘historical,’ as digital currencies finally gain one of their largest legal victories in the last decade.
As mentioned, the ban was originally introduced by the country’s central bank, the Reserve Bank of India, back in April 2018. According to the ban, none of the country’s banks and other financial institutions were allowed to provide service in relation to cryptocurrencies. This included individuals, as well as crypto businesses, or other businesses that may have been interested in working with crypto.
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The central bank justified the ban by claiming that it is necessary to protect the country’s financial system and curb “ring-fencing.” It also strongly opposed treating Bitcoin and other cryptos as currencies due to their digital form.
How did the ban affect cryptos in India?
At the time, the move sent a wave of panic through the country’s startups and crypto trading firms, many of which have since shut down or left the country. However, today’s ruling will change the state of the crypto industry in India, after Justice Rohinton F Nariman overruled the bank’s decision on the grounds of disproportionality.
The central bank itself was opposed by a group of petitioners, which included the trade body the Internet and Mobile Association of India. The petitioners argued that India should follow in the footsteps of other nations, which are not only allowing crypto trading but are even creating their own cryptos.
While it remains to be seen whether or not India will actually start creating its own crypto, it certainly did bring some clarity to the crypto industry, which made this a historic day for crypto in India, as stated by WazirX founder, Nischal Shetty.