Join our Waitlist for Expert Advice!

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

A Billionaire Founder Admits He Had 'Horrible Habits' — Then He Started a Morning Routine That 'Transformed' His Life

Kind Snacks founder Daniel Lubetzky used to go to sleep at 2 a.m. and skip his morning workout.

Starting a Business

I Quit My Corporate Job to Start a Business. Here's How I Went From Having $35,000 Credit Card Debt to Making $4 Million.

Courtney Allen, founder and CEO of presentation design agency 16x9, "recklessly" left corporate life behind in 2015 to pursue entrepreneurship.

Business News

Google's CEO Says AI Is Now Responsible for 25% of 'All New Code' Created at the Company

Google CEO Sundar Pichai said engineers are moving faster because of AI.

Business News

Read the Memo Dropbox's CEO Wrote to Staff Announcing Layoffs, Cutting 20% of Workforce

Dropbox CEO Drew Houston announced the company was laying off more than 500 employees in a blog post on Wednesday.

Business News

Starbucks Is Ditching Olive Oil Coffee From Its 'Overly Complex' Menu

The move is part of an effort to turn around lagging sales.