Indian Supreme Court lifts central bank’s ban on cryptocurrency transactions
India’s Supreme Court on Wednesday ruled to overturn the ban on cryptocurrency transactions imposed by the central bank about two years ago.
The Reserve Bank of India imposed restrictions on cryptocurrency circulation in April 2018, barring local banks and other regulated financial institutions from “providing any service in connection with virtual currencies.” The regulator explained its decision by the desire to protect the country’s financial system from associated risks. He also stated 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 have been forced to close down or relocate 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 200-300-page court opinion to be published shortly.
Earlier, a number of industry stakeholders, including the Internet and Mobile Communications Association, opposed the ban, pointing out that the authorities of other countries not only allow the issuance of cryptocurrencies, but are also developing their own. Others noted that the decision to ban the Central Bank took without proper analysis of the topic under consideration. At one of the stages, it was even assumed that the possession of non-state currencies could result in a sentence 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 to China in size. This could open up a potentially large market for bitcoin buyers, ”writes analyst Joe McCann..
The bitcoin rate did not show a noticeable reaction to this news, but the WazirX (WRX) token, which was sold on the Binance Launchpad platform in February, responded sharply. By the time of publication, it has risen by almost 50%.