Relief For Cryptocurrency Stakeholders, Trading Now Legal In India A three-judge SC bench struck down RBI's ban on cryptocurrency saying that the ban was 'disproportionate'

By Shreya Ganguly

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock.com

After a two year long fight, the Supreme Court (SC) has finally given its judgement on the statues of cryptocurrency in India. Providing relief to the stakeholders, SC on Wednesday (March 4) struck down the Reserve Bank of India imposed complete ban on cryptocurrency.

As the industry awaits for the written judgement, media reports revealed that a three-judge bench including Justice Rohinton Fali Nariman, Justice S Ravindra Bhat and Justice V Ramasubramanian stated the verdict saying that the ban was 'disproportionate'.

https://lh5.googleusercontent.com/9K-rIjJwiCflhbfClVTCEnePDsHePBJh70p9dHUynOUEU6ga6PN32HPXsp_Kjsn-CEmWvz5kRo97AZ_4y1t6G_qi9-bV3HLj1-noKC5tHqQkVBGXKa7z_gyWD4C5pZLs32tpOdbO

The Case

The Indian cryptocurrency market has been on shaky grounds due to unfavourable rules the central bank's plan on banning cryptocurrencies. In April 2018. the RBI had issued a circular which barred RBI-regulated entities from "providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies".

Earlier while speaking at the 5th bi-monthly monetary policy conference, RBI reiterated its stance on banning privately-owned cryptocurrency in India. According to RBI governor Shaktikanta Das, issuing currency is a sovereign mandate and this should not be given to private companies. He also explained that amid challenges related to money-laundering, a private currency cannot override sovereign currency.

According to the circular, organizations which were engaged in crypto-related services were to stop their services within three months however the circular was however challenged in the apex court.

According to reports, The Internet and Mobile Association of India (IAMAI) which represents several crypto exchanges approached the court and argued that RBI's circular which removed cryptocurrency from banking channels would take away the ability of law enforcement agencies to regulate illegal activities in the market.

Cryptocurrency Players Welcome SC Verdict

Taking to Twitter, the industry stakeholders are voicing their support for the SC verdict. With #IndiaWantsCrypto trending across the micro-blogging platform, stakeholders said that the move will give rise to new innovations in the country.

https://lh5.googleusercontent.com/k7oRERBtFZ5dnfwI_2wQckL3dhe2JEDFyqvbLdKPalAdCFJM7we1J7OzI1s0RUL7G8luTR6d5ccEyJcvBMTahrIe-4SgoDJGONopEYFg_kJ3PIwJDEv9TlIrqf_DkCq2LwwS_Hvr

https://lh6.googleusercontent.com/AxpIuB_so_lr-kQdD93C7zOYAtlGR_Tgn4-RpO0HRgbWACfzShvKjHrQhfRtmsC4V3dMwR6G8a8s1NMecglM2yWQRarez0BgjLczv2c82eptmZmDuu2ulRwOfO5Wo4b-5rJ_6Ua2

The Supreme Court ruling will now allow millions to participate in cryptocurrency market which might open up several opportunities in the segment.

Shreya Ganguly

Former Features Writer

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

NeoSapien Secures INR 80 Lakhs on Shark Tank India 4 for AI Wearable

Founded in 2024 by Dhananjay Yadav and Aryan Yadav, NeoSapien aims to integrate AI into daily life through its wearable technology

News and Trends

PAG Acquires Majority Stake in Pharma Packaging Player Pravesha Industries

This move underscores PAG's continued focus on India's burgeoning packaging industry, following its recent investment in Manjushree Technopack.

News and Trends

Quadria Capital Invests USD 100 Mn in Hyderabad-Based Aragen Life Sciences to Drive Global Expansion

This funding, which values Aragen at approximately USD 1.4 billion, involves a significant capital infusion along with a minor secondary sale by existing investors.