On Wednesday, a major news for cryptocurrency users came out when the Supreme Court of India quashed the curb on the trading of cryptocurrency in India.
According to a report, the Supreme Court lifted the ban on Cryptocurrencies and also made trading of virtual currencies legal. This means Cryptocurriencies like Bitcoin, Litecoin, Namecoin, Peercoin among many other can be traded by users more freely.
Currently, Bitcoin is the most valued cryptocurrency in the world with a market cap at $ 161 billion. Though the share price dipped by 0.39% to $ 8,815.
The Reserve Bank of India (RBI) with its circular issued on the 6th April 2018 had practically banned the use and trade of Cryptocurrencies in the country. RBI, through its circular, directed all the entities that come under it that they should not deal in virtual currencies or even provide their services to facilitate any person in dealing with or settling those cryptocurrencies like Bitcoin.
The entities which were providing the services before the circular was issued had 3 months’ time to end and exit all the relationship.
The RBI, in the circular, cautioned the users, traders, and holders of the virtual/ crypto currencies regarding the risks that are associated with them. The same circular (issued on 6th April 2018) was challenged in the apex court.
Representing several cryptocurrency exchanges, the Internet & Mobile Association of India (IAMAI) argued that trading in cryptocurrencies when there are no laws banning it makes it a “legitimate” business activity under the Indian Constitution. Adding, the association said that RBI had no right to deny them access in the banking channels to carry business activities.
Defending itself in the Supreme Court, RBI said that the circular it issued in 2018 to safeguard the integrity of the Indian banking system and that it has been constantly opposing the allowing of any other payments systems.
RBI also argued that there was no formal ban on the cryptocurrencies under any law that is in existence in India. RBI had only and constantly warned the people who were dealing in the cryptocurrencies of its risks.