India’s Top Court Revokes Ban on Cryptocurrency Trade Imposed by RBI

In a recent decision given by the supreme court of India which comes after various petitions which were filed challenging the ban that was imposed by Reserve Bank of India in the April of 2018. The central bank had previously ordered the financial institutions and banks to stop dealing in crypto and anyone involved with it. This resulted in stifling of various big crypto exchanges.

After an enduring fight, of filing various petitions by the crypto enthusiasts; the supreme court has finally lifted the ban over, Indian financial services firms from trading in virtual or cryptocurrencies. It is even worth noting that the decision comes after, when the government of India was already on its way to introduce a bill in its very parliament which would proscribe mining, holding, selling, trade, issuance, disposal or use of cryptocurrency in the country and this is not even the worst part there were also provisions in the draft, which would make these very activities a punishable offence with a fine or imprisonment up to 10 years.

Key Highlights

  • Ban on Crypto trade lifted 
  • Ban on banking and crypto exchanges also lifted
  • Supreme Court’s decision comes after hearing several petitions challenging RBI’s April 2018 order

The government was so determined to curb the crypto movement that, the financial secretary Subhsah Chandra Garg who headed the drafting committee of the bill had provisioned a fine up to 250 million rupees and imprisonment up to 10 years for anyone who mines, generates, holds, sells, transfers or issues cryptocurrency.

In a report bloomberg stated that a three-judge bench which was headed by Justice Rohinton F. Nariman agreed with the cryptocurrency exchanges and various startups.

Now that the ruling has turned in the favour of cryptocurrency enthusiasts and exchanges, it has created a big opportunity  for virtual currency investors and businesses in India to push against stricter rules being planned by a skeptical government, and potentially raises hope for projects such as Facebook Inc.’s Libra cryptocurrency. 

As predicted by us in our various other articles that the year 2020 was going to be the year of cryptocurrency, this comes as a breath of relief for all the cryptocurrency enthusiasts in India. As all the Indian crypto exchanges were going through a very grave time of grueling struggle and hardship after the 2018 RBI ban; forcing some of the largest crypto exchanges to pull down their shutters.