On Wednesday, the Supreme Court of India quashed the order issued by the RBI (Reserve Bank of India) of banning financial services companies from trading cryptocurrencies.
This decision has come after almost 2 years of several hearings of petitions that challenged RBI’s order of imposing a ban on Indian financial enterprises as well as individuals from trading in virtual currencies.
The Government of India has announced repeated warnings against trading or investing in cryptocurrencies, saying that these are fraud schemes that offer unexpected and surprisingly high returns to early investors.
The petition against the circular issued by RBI on April 6, 2018, was filed by the Internet and Mobile Association of India (IMAI). IMAI is an organisation whose members include multiple cryptocurrency exchanges. Represented by advocate Ashim Sood, various hearings argued against Central Bank’s ban that cryptos are more like commodities rather than currency. Also adding that the RBI does not have the authority to regulate this field.
India banks are now ready to deal in cryptocurrencies, which will make it easier for companies and individuals to trade on virtual currency exchanges. Although exchanges were not banned until now, limitations put on banks made it difficult for them to operate. The judgment has opened gates for crypto companies like Ripple, Ethereum, PCEX, etc.