Sun. Aug 7th, 2022

The Supreme Court in India has overturned the ban on cryptocurrencies placed by the country’s central bank.

Cryptocurrencies Now Legal In India

The Reserve Bank of India had previously placed a ban on cryptocurrency transactions in the country. However, the Supreme Court in the country has now overturned the ban, following an appeal from multiple entities in the country, making it legal to carry out cryptocurrency transactions in India once again.

The Reserve Bank of India imposed a ban on cryptocurrency trading in April of 2018. The ban stopped banks and other financial institutions from facilitating any transaction that has to do with cryptocurrencies. Back then, the RBI stated that the ban was imposed in order to eliminate the “ring-fencing” of India’s financial system. The apex bank insisted that Bitcoin and other cryptocurrencies cannot be treated as currencies since they are not made of metal and don’t have an existing physical form. Also, the cryptocurrencies are not stamped by the government, which disqualifies them from serving as currencies.

The ban on cryptocurrency transactions led several startups in the country to close shop, with some of them halting their cryptocurrency services. However, the decision by the RBI was challenged by several entities in the country, including the trade body, the Internet and Mobile Association of India. The organizations encouraged India to look at other countries around the world where trading cryptocurrencies are not only allowed, but they are also making moves to create their own virtual currencies.

In the ruling headed by Justice Rohinton F. Nariman on Wednesday, March 4, the decision by the RBI was overturned on the grounds of disproportionality. Cryptocurrency enthusiasts in India and around the world are happy with this latest development.

Nitin Sharma, a tech investor, commented that the ruling by the apex court in the country was historic as it has finally brought clarity to the cryptocurrency community. Nischal Shetty, founder and CEO of Bitcoin exchange platform WazirX, stated that the latest decision is clearly a historic day for crypto in India and as a result, they will be able to innovate enabling the entire country to finally participate in the blockchain revolution.

Crypto World Excited For India

The ban on cryptocurrencies in India had affected the use of digital currencies in the country. The crypto community is now excited about this latest development due to India’s position in the global ecosystem.

Cryptocurrencies have been struggling to gain massive adoption, and one of the ways to achieve that is to gain entry into countries with huge populations, like India and China. With the overturning of the ban on cryptocurrencies in India, more people are expected to start using them.

In a population of over 1 billion people, millions of people are expected to use digital currencies. Following the ruling by the Supreme Court, crypto exchanges in the country are rolling out support for fiat currencies and collaborating with local banks to support the integration. This is an indication that the exchanges and banks see a massive need for fiat integration to make it easier for people to use cryptocurrencies.

 

By barry