Indian crypto business revives with a new decision from Supreme Court of India

Indian crypto enthusiasts are celebrating — the Supreme Court of India has lifted cryptocurrency ban in the country.

Indian cryptocurrency exchanges are bringing back banking support after the Supreme Court of India struck down the banking ban on the crypto industry.

In April 2018, RBI issued a directive prohibiting banks from conducting any business with companies related to cryptocurrencies. The central bank said that cryptocurrencies not only undermine FATF anti-money laundering standards and are used to finance terrorism, but also threaten the integrity of the banking system. On July 6 of the same year, the order came into force.

In July 2018, the Supreme Court held two sessions to consider repealing the directive, but both times it was upheld. As explained in the court, this was due to lack of sufficient comments from those involved in the process.

The third session was postponed several times for various reasons, but it was there that the community achieved the result: the Supreme Court cancelled the directive.

The decision was based on the argument of the “disproportionate nature” of the directive. The authors of the lawsuit stressed that the central bank could not prove that the banks were threatened by the crypto. The Supreme Court also agreed that the directive had been adopted in the absence of clear regulation of cryptocurrency in India.

Nasscom, India’s largest not-for-profit association of crypto companies, welcomed the Supreme Court decision, stating that “a technology ban would not help and a risk-based framework for regulating and monitoring coins and tokens should be developed”.

The victory of the #IndiaWantsCrypto movement was announced at Binance’s takeover of the local WazirX crypto exchange. Already the next day — “after 19 months of tedious waiting” — the site added the possibility of replenishing accounts in rupees.

The community believes that the lifting of the ban will not only have a positive impact on the further development of the industry, but will also stimulate the growth of adjacent sectors such as fintech.

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