Cryptocurrency Trading Banned by RBI in 2018
The central bank of India has imposed a ban on cryptocurrency trading on 6th April 2018 that prohibited the banks as well as other financial institutions from aiding any service related to cryptocurrencies.
The reason that led RBI to make such a decision according to RBI authorities’ statement was that the move was necessary to bring ring-fencing of the country’s financial system in control.
Cryptocurrencies and bitcoins not being made of metal and not existing in the physical world was also part of the reason that led to the ban.
The notice about this ban released by RBI in 2018 sent many local start-ups as well as companies offering services related to cryptocurrency hitting the panic button. And, unfortunately, most of these companies have stopped their operation since then. Zebpay, once India’s largest cryptocurrency exchange also shifted out of the country.
Cryptocurrency Trading Ban Overruled by the Supreme Court of India
Headed by Justice Rohinton F Nariman, the three-judge ruling panel today overruled RBIs notices for the reason that it being disproportional.
The initiative to overrule the ban was due to a group of petitioners that included the Internet and Mobile Association of India who represented various cryptocurrency exchanges. They challenged RBI’s notice with a solid statement that India should look at the other crypto-friendly nations that have not only allowed crypto trading but also have launched their own virtual currencies.
India Rejoices Supreme Court’s Decision
Indians are currently celebrating the Supreme Court’s decision of striking down the curb on cryptocurrency trading in the nation. Many crypto enthusiasts have hailed this decision on Twitter. Take a look at a few of the tweets below: