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March 13, 2020, 05:55:00 AM |
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The Supreme Court of India has decided to lift the ban on cryptocurrency trading in the country which was banned by the Reserve Bank of India in the year 2018. The three-judge bench of SC said RBI’s ban on crypto trading was unreasonable. RBI was not able to provide enough evidence that can prove potential harm that could be suffered by the regulated currencies, and RBI’s ban was unjustified.
Since the initiation of crypto trading in the year 2015 India was a favourable landscape for crypto trading. But things changed in the year 2018 when RBI took the first step towards regulating cryptocurrencies by generating a circular. This move of RBI led to the fall in cryptocurrency trading in India, and cryptocurrencies were pushed aside by cutting off their financial sources.
This forced the cryptocurrency traders to move their base to other countries like Estonia, Singapore, etc. However, the views of the regulators came to the fore after RBI’s circular was challenged by the Supreme Court for the first time, and RBI said that it did not seek to ban cryptocurrencies. The judgment was passed in accordance with the references (developing countries in particular) provided over 50 cases across the world.
After passing the 180 page-long judgments by SC, it has brought in a clear understanding of cryptocurrencies and its legal standing in India. After the judgment was passed the entire crypto industry in India celebrated on social media. Moreover, the Supreme Court even stated that RBI should keep check that no harm was caused to banking transactions and regulated currencies due to virtual currency trading. This judgment of SC came in as a major relief because RBI’s ban was hindering banking transactions for cryptocurrency exchanges and traders.
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