Cryptocurrency Ban in India Lifted

Mar. 4, 2020

In what can only be seen as an unexpected move, the Supreme Court has lifted the ban on cryptocurrency trading in India today. The court hasstruck down the restraints that the Reserve Bank of India (RBI) had imposedclose to two years ago. This is a momentous decision, one that surely makes it a joyous occasion for crypto traders in the country.

The court hearing was chaired by a 3-judge bench comprising – Justices R F Nariman, Aniruddha Bose, and V Ramasubramanian. The bench agreed with petitions by crypto exchanges, startups, and industry bodies against the RBI’s circular that banned trading in cryptocurrency in India. They called the directive disproportionate and illegal.

The RBI was challenged in the top court by the IAMAI (Internet and Mobile Association of India) and a few other stakeholders. They argued that the central bank lacked jurisdiction to issue the ban of crypto trading and also, itdid no researchto back the directive. They further argued the central bank imposed the aforementioned law because they found the virtual currency impossible to regulate.

In short, the top court’s order now means that theban on trading in virtual currency, cryptocurrency, and bitcoins in India has officially been lifted. The ruling will give crypto businesses and investors a much-needed boost, while they also look forward to a more supportive regulation for virtual currencies in India.

While the RBI stands by its directive, the National Payments Corporation of India (NPCI) has been experimenting with a blockchain-based payments platform calledVajra. It was unveiled last year and is a distributed ledger system designed to automate the process of clearing and settling payment