The Supreme Court of India has finally given out its judgement in the prolonged ‘Crypto Case’ filed against the Reserve Bank of India’s banking ban of 2018. The year-long court proceedings finally came to an end on 4th March and Supreme Court in its judgement has deemed the RBI’s Banking ban as unconstitutional.
Supreme Court of India has struck off Reserve Bank of India’s (RBI) banking ban against #Crypto. The Court held that RBI Circular dated 6th April 2018 is unconstitutional.
— Crypto Kanoon (@cryptokanoon) March 4, 2020
The RBI in an April 2018 circular had prohibited any private or central bank from offering its service to crypto service providers and businesses. The banking ban virtually shut the booming Indian crypto industry, where many crypto service providers had to either leave the country or completely shut their operations.
The banking ban was challenged in the Supreme Court by the Internet and Mobile Association of India (IAMAI), citing Central Bank’s move as unconstitutional and not falling under RBI’s jurisdictions. The case proceedings went on for over a year where counsels from both sides presented their arguments.
RBI in its defence noted that they had not banned the trading of cryptocurrencies, but since most of the countries were still studying the impact of these digital currencies and its effect on their financial sovereignty, they only prohibited banks from offering any kind of services to the digital currencies business operators. RBI claimed that Banks fall under their jurisdiction and it was their duty to protect consumers from dealing with unregulated entities.
The IAMAI counsel argued that RBI took the decision in a haste and did not bother to research or study the utilities of these virtual assets. They also argued that any issues pertaining to security laws fall under the jurisdiction of Securities and Exchange Board of India (SEBI). The arguments against RBI seemed more valid and compelling which gave hope to the uncertain crypto community in India.
Cryptocurrency No More a Taboo In India?
Today’s Supreme Court judgement would not only come as a big relief for the Indian crypto community but also remove all the misconception and rising fear among entrepreneurs looking to venture into the digital currency space. The RBI banking ban was wrongly interpreted as a blanket ban and a majority of the Indian community believed that trading crypto was illegal.
India is the IT outsourcing capital of the world and many big crypto firms like Binance, OKex, Ripple and many other firms have been eyeing the India market given its sheer mammoth size. Thus, today’s judgement would be considered historic by many for the Indian crypto community.