Like a real currency, cryptocurrency enables us to buy goods and services. For conducting a financial transaction, it is a medium of exchange which has based on the internet. Over the last few years in the business world, it becomes the primary headline and disruption. In India, Cryptocurrency banned because of the risks it poses. Now, After the ban quashed by the Supreme Court, the closed doors of Indian Exchange post the ban of RBI will possibly re-open for trade. The industry of this currency is very excited by the Supreme Court’s move. This move of the Supreme court has welcomed by industry experts.
Cryptocurrency ban lifted in India.
The Supreme Court ban on cryptocurrency has lifted, which is imposed by RBI in 2018. RBI ban on cryptocurrency prevents financial institutions from providing banking services to cryptocurrency companies. Industry experts hail this move of the Supreme Court. However, they advise the users to utilize caution dealing in crypto and the companies to improve AML policies and ensures data privacy while dealing with it.
A circular had issued by RBI on April 6, 2018, which states that a ban on this currency in the country. Also, all the financial entities should not deal with it. After the issuance of this circular, all the commercial entities that were giving such services asked to shut it within three months.
However, on March 4, 2020, the Supreme Court of India lifted the RBI ban on financial entities. After the ban on cryptocurrency lifted by the Supreme Court of India, a Mumbai based Indian Cryptocurrency Exchange CoinDXC announced that “the integration of bank account transfers to become the first platform in India to act on the ruling promptly.” Further, it stated that the user could purchase cryptocurrencies with the Indian rupee. Co-founder and Chief Executive, CoinDCX Sumit Gupta, “With renewed accessibility and convenience in buying cryptocurrencies, we assume that this change will have a dramatic effect in quickening crypto adoption in India.” As the digital asset is already popular in the global market, cryptocurrency gets a significant lift in India.
On the other hand, it also involved in scandals and controversies. The most common cryptocurrency is Bitcoin. Also, Bitcoin is famous among hackers for ransom. However, it does not affect the performance of Bitcoin, which increases 9,000,000% in the past decade. As the Court pointed out, RBI does not have any observed data to show the harms caused by this currency.