The crypto space has had an uneasy relationship with India in recent times. Back in 2018, the Reserve Bank of India (RBI) banned banks from dealing with virtual currencies, effectively shutting off 1 billion plus people from trading cryptocurrencies.
At the time of the banning the RBI said it wanted to ‘uphold the integrity of the banking system’ in the country.
And although the Indian government didn’t fully ban owning crypto, it did consider a 10-year prison sentence for anyone holding ‘non-sovereign’ cryptocurrencies.
India Overturns Ban on Trading Crypto
In a historic judgement today, however, India‘s Supreme Court reversed the ruling by lifting the ban on crypto trading, saying the ruling had been ‘disproportionate’.
After the ban, no deposits or withdrawals in Indian Rupees were allowed from crypto exchanges, but after today’s decision India’s biggest exchange, Zebpay, tweeted their delight.
‘The verdict is out! Today the Supreme Court of India has removed the RBI ban on #crypto. We at ZebPay want to say a huge thank you to the SC for allowing millions of Indians to have access to crypto.’
WazirX was equally delighted, tweeting: ‘Historic day for the entire Indian crypto ecosystem. Crypto has won!’
And it is a historic day, not only for the crypto community but for the whole country. Crypto doesn’t do borders, and any government stopping its people from being able to access a truly global asset class will not only hinder crypto, but more so its people.
With today’s verdict reversing the ban, it’s going to open up so much investment opportunities in the country, and Sumit Gupta, co-founder and CEO of CoinDCX, was delighted with the verdict and expressed his excitement for the future.
‘We have always believed in the ideals of collaboration and today goes a long way in proving that communication and dialogue with decision-makers may lead to constructive, sensible outcomes for our industry,’ said Gupta.
‘The uplifting of the ban by the Supreme Court is going to open new opportunities for India in terms of investments, economic growth, financial inclusion, and market maturation.’
Crypto To Receive Huge Boost in India
Highlighting the impact of the RBI ban on cryptocurrency, Ganesh Vasudevan, Research Director, IDC Financial Insights, India called it a ‘welcome move.’
‘While crypto currency as such were not banned,’ said Vasudevan, ‘the banking services restriction by RBI had completely crippled the cryptocurrency settlements in India resulting in winding up of most of the crypto exchanges in India.’
It’s a momentous day for crypto in India. Over a billion people were cut off from buying cryptocurrencies, but are now legally able to purchase them. Many crypto companies had to close after the ruling was branded by the RBI.
Now the ban has been lifted, it can be expected, therefore, that many exchanges will begin to reopen their doors again, and much more investment, not just in cryptocurrencies, but the infrastructure of the space in which India will have to catch up pretty quickly.
Author: Tommy Limpitlaw