Cryptocurrency fans in India can rejoice as the Supreme Court has lifted the ban on digital currencies. This comes in response to the petitions that Cryptocurrency exchanges, industry bodies, and startups filed in the court. These stakeholders challenged the Reserve Bank of India’s decision to ban Cryptocurrency in April 2018. Taking a look back, RBI barred banks from offering any services to support digital currencies. The result will likely help the Cryptocurrency industry stakeholders to push back against the strict rules likely it works. The government of India is also planning on drafting a stricter set of rules for digital currencies. Let’s have a closer look at the ruling and the case.
Cryptocurrency ban lifted in India; details
According to a report from Bloomberg, this ruling will likely make things better for upcoming digital currency projects. This includes the Libra Cryptocurrency from Facebook. As per the report, the Supreme Court is also heading on a separate case regarding regulations on digital currencies. However, this will likely make things difficult to push strict rules. As part of the report, Vaibhav Kakkar, a partner with L&L Partners issued a statement.
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Kakkar added, “Cryptocurrencies are an exciting technology that needs to be carefully studied.” He added, “With this order, there is a likelihood of more mature and balanced regulation of cryptocurrencies.” The report added that India is also studying ways to create a virtual currency that is backed by the state. As per past reports, the ban was placed in the first place to combat “money laundering” and “other illegal activities”.
In addition, RBI did not issue a statement in response to the Supreme Court ruling. Cryptocurrency advocates also argued that RBI did not have the power to issue the ban without studying digital currencies. CoinRecoil co-founder Kunal Barchha stated that the company will approach potential investors after the ruling.