After nearly two years of uncertainty, cryptocurrency exchanges and investors in India can finally breathe a huge sigh of relief as the country’s Supreme Court ruled against a decision imposed by the Reserve Bank of India banning cryptocurrency entities in Asia’s third-largest economy. Token prices of crypto exchanges in India have seen a sharp increase and investor sentiment has been unanimously positive.
It is indeed a historic day for the crypto community in India as the Supreme Court of India has overruled the Reserve Bank of India’s (RBI) controversial ban on banks’ dealings with cryptocurrency trading and crypto-related firms back in April 2018.
The ban had stifled crypto trading in Asia’s second-most populous nation and forced crypto exchanges in the country to either shut down, relocate to other jurisdictions or transition their business model to crypto to crypto and over the counter transactions.
At the time, the RBI stated that the ban was necessary as a means of curbing the “ring-fencing” of India’s financial system. A ring-fence refers to a virtual barrier that isolates a portion of financial assets from the rest as a means of reducing taxes or reserving money for a specific purpose.
The RBI also argued that Bitcoin, Ethereum and other crypto assets cannot be treated as currencies since they do not exist in physical form and were not stamped by the Indian government.
Wednesday’s Landmark Ruling
While crypto exchanges and investors immediately filed petitions to the Supreme Court challenging the RBI’s ban, there was no clear decision even after several rounds of hearings. Wednesday, March 4, however, was the turning point as the Supreme Court finally delivered its ruling.
In a report by the Economic Times of India, the three-judge bench headed by Justice Rohinton F. Nariman ruled in favor of the cryptocurrency exchanges, startups and industry bodies petition. With this development, cryptocurrency-related activities are now officially legal in India.
Joyful Sentiment All Round
Naturally, the crypto community in India has reacted to the new ruling positively and have expressed their delight at the new opportunities that have opened to the country.
“The uplifting of the ban by the Supreme Court is going to open new opportunities for India in terms of investments, economy, and a market as a whole… We have always seen crypto as a potential to unlock India’s dream of becoming a $5 trillion economy,” said Sumit Gupta, CEO of exchange aggregator CoinDCX.
Kunal Barchha, co-founder of CoinRecoil.com shared his joy at the fact that his crypto exchange was now free to approach investors who had initially backed off after the RBI’s ban.
“Now crypto traders, investors, miners, can proudly speak up about what they do for a living. Now they won’t be judged as criminals.” He said.
Even the crypto-Twitter community celebrated the news as this ruling is seen as a milestone development toward the greater adoption of cryptocurrencies across the globe.
Where Do We Go From Here?
As the dust settles, crypto exchanges and investors in India have begun setting up a road map for the country’s legalized entrance into the crypto space. Nischal Shetty, founder of WazirX, India’s most popular cryptocurrency exchange was quick to unveil the platform’s next steps.
Will India’s crypto industry skyrocket as a result of this historic ruling? Add your thoughts in the comments section below.