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The Supreme Court of India on Wednesday ruled to lift the ban on cryptocurrency transactions, which the central bank established about two years ago.
The Reserve Bank of India imposed restrictions on the circulation of cryptocurrencies in April 2018, banning local banks and other regulated financial institutions from “providing any services in connection with virtual currencies”. The regulator explained his decision by the desire to protect the country’s financial system from the attendant risks. He also said that bitcoin and other cryptocurrencies cannot be considered money, since they are not minted from metal and are not supported by the state. As a result, many Indian crypto startups were forced to close or move abroad.
During today’s meeting, the panel of judges, chaired by Judge Rohinton Nariman, canceled the requirements of the Central Bank, calling them unconstitutional, writes Bloomberg. A court report of 200-300 pages will be published shortly.
Earlier, a number of interested industry participants, including the Internet and Mobile Communications Association, opposed the ban, pointing out that authorities in other countries not only allow cryptocurrencies to be issued, but are also developing their own. Others noted that the Central Bank adopted the decision to ban the bank without due analysis of the topic under discussion. At one stage, it was even assumed that the possession of non-state currencies could entail punishment of 10 years in prison.
“This is a historic day for cryptocurrencies in India. Now we can develop. The whole country can participate in the blockchain revolution, ”said Nishal Shetty, founder and CEO of the Indian cryptocurrency exchange WazirX.
“India is close in size to China. This could open a potentially large market for Bitcoin buyers, ”says analyst Joe McCann.
