India’s Supreme Court Lifts Central Bank’s Ban on Crypto

The Supreme Court of India on Wednesday ruled to lift the ban on cryptocurrency transactions, which the central bank established about two years ago.

The Reserve Bank of India imposed restrictions on the circulation of cryptocurrencies in April 2018, banning local banks and other regulated financial institutions from “providing any services in connection with virtual currencies”. The regulator explained his decision by the desire to protect the country’s financial system from the attendant risks. They also said that Bitcoin and other cryptocurrencies cannot be considered money since they are not minted from metal and are not supported by the state. As a result, many Indian crypto startups were forced to close or move abroad.

During today’s meeting, the panel of judges, chaired by Judge Rohinton Nariman, canceled the requirements of the Central Bank, calling them unconstitutional, writes Bloomberg. A court report of 200–300 pages will be published shortly.

Earlier, a number of interested industry participants, including the Internet and Mobile Communications Association, opposed the ban, pointing out that authorities in other countries not only allow cryptocurrencies to be issued but are also developing their own. Others noted that the Central Bank adopted the decision without due analysis of the topic under discussion. At one stage, it was even assumed that the possession of non-state currencies could entail a punishment of 10 years in prison.

The Bitcoin exchange rate did not show a noticeable reaction to this news, but the WazirX (WRX) token, which was sold on the Binance Launchpad platform in February, sharply responded. By the time of publication, it had risen by almost 50%.