March 2020 ushered in a wind of positivity for the future of cryptocurrency in India with the uplifting the ban against them by the Supreme Court. This has finally settled the debate on whether Bitcoin is legal or not in India.
A decision hailed by the crypto community as a big win will encourage more Indians to invest in cryptocurrency down the lane.
The Supreme Court’s decision on March 4, 2020, to lift the ban and restrictions placed by RBI has already started paving the path for crypto activity.
It all started in 2018 when the Reserve Bank of India decided to ban banks and crypto firms working together. Interestingly, it led to a steady price increase of cryptocurrencies. The ban by the central bank prevented local banks from any form of trading in bitcoin or cryptocurrencies. This led to the decision by the Supreme Court to give the government four weeks to create a regulatory framework that will help determine the legalities of cryptocurrency in India in the future.
According to the new rules by the Supreme Court, while the banks in the country are still not allowed to cooperate with cryptocurrency platforms, the cryptocurrencies are not illegal in the country. With India lagging behind other countries in the adoption of digital currencies, it has made it largely open to bitcoin as well as other cryptocurrencies.
The two year battle between the Indian crypto community and the Reserve Bank of India has finally come to an end, with the former scoring a win. The court deemed the ban by RBI as unconstitutional. Although the ruling still bans financial institutions in the country from offering services to crypto firms, cryptocurrency has finally become legal. So, if you were waiting for the legal stance to buy Bitcoin, here is your chance.
Following this remarkable ruling, the National Association of Software and Service Companies (Nasscom), tweeted that they welcomed the court’s decision and that it is better to chart out a risk-based framework to monitor and regulate tokens and cryptocurrencies rather than banning them outright.
Why lifting the Ban was Essential?
A blanket ban on cryptocurrency can actually hurt the country in the long run. It will be left behind by other countries as they move towards the future. It is essential to come up with a framework that regulates and monitors the transactions of tokens and cryptocurrency in the future. With over a billion population, India is a large market for the many possibilities offered by cryptocurrency. The Supreme Court ruling will lead to more startups in cryptocurrency and help activate the sector tremendously.
Unfortunately, the fight against the RBUI ban has had its cons, especially for Coinrecall, a crypto exchange. It was one of the first companies to challenge the ban. However, it has to withdraw from the battle a few months ago due to financial stress. The Supreme Court ruling has given them a lease of life and they are now aggressively looking for new investors to make their mark in the cryptocurrency market in the country. So it is now finally time to stop asking, is bitcoin mining legal in India?
The 22-month battle has taken its toll on several crypto firms. But the ruling has become a huge clap back for all of its detractors. It will help India turn into a forerunner in cryptocurrency in the future. After the Supreme Court judgment was released, several crypt currency exchanges have moved forward to reintegrating banking solutions to draw in INR support via bank accounts.
This will enable Indian consumers to directly deposit and withdraw INR from their personal wallet with crypto firms. Once the framework is released by the government, it will become easier for the customers to process their deposits and withdrawals. Convert INR to Bitcoin at the best rate.
Bitcoin, one of the more popular cryptocurrencies, has soared recently. However, it is still susceptible to sudden price fluctuations. The industry leaders in cryptocurrency in India are concerned whether the sudden interest in digital currencies is due to the aggressive monetary policy by the RBI.
The lack of crypto awareness has made a huge dent in India’s journey in the cryptocurrency space. However, by the looks of the recent Supreme Court’s judgment, things finally seem to be falling into place. Once a framework for regulating and monitoring crypto firms has been released, it will enable a hassle-free banking experience for Indian consumers.
Some crypto exchanges in India have already seen a sharp rise in the number of users as well as trading volumes after the Supreme Court judgment. This is mostly due to the number of traders who have returned to the market after the Supreme Court judgment. The crypto firm believes that not many new investors have taken the initiative yet. Once new investors start pouring in, the price of bitcoin will definitely see a steady increase. The current pandemic situation has also enabled previous traders to use the time on their hands to trade on their computers. This has helped improve the cryptocurrency market tremendously.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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