Supreme Court Lifts the Ban on Cryptocurrency Trading

CIOReviewIndia Team | Thursday, 05 March 2020, 07:06 IST

Supreme Court Lifts the Ban on Cryptocurrency Trading

Striking down the curb on crypto currency trade in India, Supreme Court, this Wednesday (March 4th), lifted the long-awaited ban on trading through cryptocurrency. This digital currency was virtually banned by RBI in 2018 (April 6th). They had barred its every entity from dealing in any sort of virtual currencies or even provide any sort of services whatsoever. To caution traders, users, and holders of virtual currencies and its associated risk factors, RBI had also issued circulars. 

“It’s a very positive sign that has come through, something that we have been waiting for and expecting for two years now. Most of the infrastructure and bits and pieces towards the cryptocurrency were already built out over the last few years,” said Benson Samuel, Director of Technology at Tokenyz Ventures. He also stated the many companies who were shut down due to the ban will re-emerge in the current market due to the lifting of the ban. “We should see a lot of them restarting and a lot more activity happening around this space,” he added.

Also, bitcoin, which is the most valuable cryptocurrency in the world, had shrunk down to 0.39 per cent (USD 8,815). While, the market cap of the currency stood at USD 161 billion.

Representing various cryptocurrency exchanges, the Internet and Mobile Association of India had argued that the absence of law in the cryptocurrency’s trading made the banning a needed action under the Constitution. If we talk about Central Bank, they have been opposing every other payment systems, for which they defended its 2018 circular in Supreme Court, to withhold the integrity of the banking system.

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