The crypto world is today rejoicing over a landmark ruling in India overturning a ban imposed on cryptocurrency trading in April 2018. By way of background, the Reserve Bank of India had previously barred domestic banks and other financial institutions from facilitating “any service in relation to virtual currencies”.
This ban severely crippled the ability of crypto-related operators to carry out services, even leading to many to shut down or relocate.
India is the world's fifth-largest economy (in term of nominal GDP) with a population of over 1.3 billion people. Most observers will agree that the Indian market shows tremendous promise, with a potential customer base which dwarfs most other countries.
The overturning of the ban is by no means the end of the story in India. It is clear that further hurdles are yet to be overcome before the country embraces this revolutionary technology. The Indian government recently chose to delay the introduction of a bill to Parliament which could lead to a cryptocurrency ban – such bill aims to impose a total ban on cryptocurrencies being used in India and would also build the groundwork for a state-backed “Digital Rupee” issued by the Reserve Bank of India.
Although the road ahead is not clear, this case represents a significant step forward in the Indian cryptocurrency story. Additionally, it is a further indicator of the gradual legitimatization of cryptocurrencies globally. It will be interesting to follow this story developing in the near future.
"The uplifting of the ban by Supreme Court is going to open new opportunities for India in terms of investments, economy, and a market as a whole," said Sumit Gupta, founder and CEO of exchange aggregator CoinDCX.