Crypto Can Find a Home in India Again
The ban first emerged in 2018 by way of the Reserve Bank of India (RBI). The financial institution stated that cryptocurrencies were not real money in that they did not exist in physical form. In addition, governments are usually responsible for issuing new forms of money. As crypto did not come by way of a government entity, they were invalid and unfit to be used as a means of payment.
However, the ban was not a removal of cryptocurrencies themselves, but rather a limiting of the powers of banks and financial enterprises. These companies were not allowed, under Indian law, to work with or supply services to companies that delved in crypto or digital assets, so while the people had every right to trade them, there were no local businesses that could assist in storing them.
However, India’s highest court has since deemed the ban unconstitutional. Banks and crypto businesses can now enjoy each other’s company, and the price of bitcoin has once again jumped beyond the $9,000 mark following the positive news.
In a 180-page report, the court hearing the case said that the RBI failed to produce any evidence suggesting that crypto was damaging to India’s infrastructure. The report reads:
RBI needs to show at least some semblance of any damage suffered by its regulated entities, but there is none.
As the RBI has not suffered from the presence of cryptocurrencies, India has deemed that crypto presents no harm and can thus remain in place.
At the time of writing, there is still fear amongst analysts and customers alike that the nation will try to introduce laws against cryptocurrencies in the future. Anirudh Rastogi – a lawyer who represented several crypto-based businesses when the ban was first instilled two years ago – called this fear “overarching,” but says that the removal of the ban is still a positive (albeit temporary) step forward.
For now, this is a good move as the exchanges can go back to crypto-to-fiat trade, which has stopped.
The previous ban bore heavy repercussions on crypto ventures in India. Many, including Zebpay – one of the largest digital trading and storage platforms in India at the time – were forced to close their doors and either cease their operations altogether or relocate.
Bringing the Digital Heart Back
Others simply closed due to the lack of interest in crypto holding India was experiencing at the time. The ban ensured that everyone who had ever felt a kinship with crypto suddenly had a change of heart.
For now, however, the ban is likely to get people back in a “digital mood” and bring one of the largest and most populous countries to the front of the line of the crypto arena.