India’s Supreme court lifts Ban on Cryptocurrency

The long-standing ban on the trade of cryptocurrency in India ruled out eventually after 2 years of the court proceeding. The top court endorsed its decision on behalf of the use of cryptocurrencies on Indian soil. Before this landmark decision, any transaction in digital currency in India was not allowed. The reserve bank of India had taken its support back hence leading to no transaction from the Indian bank account for the purpose of buying cryptocurrency.

While hearing a petition filed by the Indian cryptocurrency exchanges, startups and corporate bodies challenging the Reserve Bank of India’s April 2018 decision to bar Indian bank for indulging in any services related to the digital currency, Justice F. Nariman agreed with the petitioner’s demands. The court made the decision against the existing RBI’s ban on crypto trade.

The other two justices of the court bench Ravindra Bhat and V Ramasubramanian delivered the final verdict on this litigation today in the favor of crypto community making the Reverse Bank of India(RBI)’s restrictions on banks dealing in crypto null and void.

The twitter is flooded with tweets from the crypto community across the world celebrating the positive judgment of the court. The crypto-based starts up, traders, and investors have welcomed this decision with a hope of progress in utilizing the revolutionary blockchain technology. 

The Crypto Kanoon, a tweeter handle of lawyers working on behalf, was first to disclose this landmark ruling,

Breaking:
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.

— Crypto Kanoon (@cryptokanoon) March 4, 2020

At the same time, The Supreme court is hearing a separate case concerning the proper regularization of digital currencies in India. The crypto community is also working to provide leverage and lesser strict guidelines for entities dealing in crypto.

While initially criticizing the digital currency due to the probability of its use in money laundering and other illegal transactions, the central bank of India, RBI, has been exploring the requirements of creating its own government-backed digital currency.

This strict regulation by RBI on firms dealing in crypto had a terrible impact on Indian’s crypto startups and exchanges. One of the leading crypto exchange ‘Koinex’ had closed its operation eventually after struggling with banking transactions over RBI restrictions on banks dealing in Crypto. Along with Koinex, other crypto exchanges and start-up initiatives shut their operations amid crackdown over banks.

The Road Ahead

This landmark judgment against the central bank’s controversial ban on cryptocurrency will open a new era of development and progress in the field of blockchain. However, the regulation and guidelines over the use of digital currency are the next big hurdle to face. It is important to note that in the last quarter of 2019, the Indian government devised a bill named ‘Banking of Cryptocurrency and Regulation of Official digital Currencies’ but delayed to brig in parliament for discussion. This bill was intended for a complete crackdown on the digital currency. Now, this decision in favor of cryptocurrency has sparked hope. The decision related to the regulation will further strengthen and empower the Indian crypto community to benefit from this $150 Billion Industry. Furthermore, the individuals and firms dealing in digital currency can proudly disclose their business and profession.