The much-awaited verdict in the prolonged crypto case has finally arrived and the Indian community along with the rest of the crypto world is quite rejoiceful of the supreme court judgment deeming Reserve Bank of India's (RBI) April 6 circular unconstitutional.
A Brief History The RBI circular dating April 6, 2018, asking banks to avoid offering any services to cryptocurrency service providers was challenged by the Internet and Mobile Association of India (IAMAI) in the supreme court calling the banking ban unconstitutional. During the same time, the supreme court also directed the Finance Ministry to formulate guidelines around cryptocurrencies, so that the court can address and look into cases related to crypto fraud and criminal activities. The inter-ministerial committee tasked at formulating measures for the crypto space proposed a blanket ban on virtual currencies while encouraging the use of blockchain and DLT. The draft bill proposing a blanket ban came as a shocker to many, and many stakeholders believe that the bill could kill an entire ecosystem capable of generating at least a $12.9 billion in direct revenue and thousands of jobs. The Crypto vs RBI case court proceedings moved slowly thereafter for almost a year, where the hearings were often postponed or adjourned for various reasons. The most prominent argument in the case began at the start of this new year, where the judges asked both the counsels to start fresh arguments from the beginning and this particular phase in the case is considered as the most crucial one. The IAMAI counsel argued that the jurisdiction to deal with security and exchanges lies with Securities and Exchange Board of India (SEBI) and RBI did not conduct any study or research before taking the harsh decision. The RBI counsel rebutted arguing that the central banks to not offer any banking help to digital asset providers owing to the risks involved. The RBI counsel argued that banks fall under their jurisdiction and thus they were not wrong to advise banks to stop offering their services. The judges in the case decided that the RBI was wrong to impose a blanket ban and quashed the decision. The judgement for sure removed any doubts and fear for entrepreneurs and businesses looking to start business in the crypto space. But, until clear regulations are implemented, these crypto service providers must remain cautious and must watch out for potential scams. Subscribe us to know more about breaking crypto news and crypto updates. Cryptoknowmics provides the updates about top cryptocurrency events and world blockchain summit videos.