The Legalization Of Cryptocurrency In India - Things You Need To Know

Source : https://coinscapture.com/blog/the-legalization-of-cryptocurrency-in-india-things-you-need-to-know

Cryptocurrency is a virtual currency that has gained hype and growth like never before. However, in many countries, it has been banned or it is unrecognized or has been highly, mildly or not regulated at all! 

In the same way, India had banned crypto trading in April 2018, The RBI (Reserve Bank of India) had imposed a ban on Cryptocurrency trading that leads to a barred of crypto in banks and other financial institutions. RBI then had stated that it was ‘ring-fencing’ and had to be curbed as it cannot be treated as currency because it is not made of metal or has existed or exists in physical form or is approved or stamped by the government. However, on the 4th March 2020, Wednesday, India’s Supreme Court lifted the ban from cryptocurrency which in many ways was like a historical verdict for the Indian crypto users. The bench was headed by Justices Rohinton F. Nariman, Aniruddha Bose and V Ramasubramanian who overruled/ overturned the circular by the central bank stating it to be disproportionate. Central bank’s circular was challenged by a group of petitioners including the trading body of the Internet and Mobile Association of India.

Salman Waris, a partner at TechLegis Advocates and Solicitors, said, 

“The fact that the apex court outrightly shot down a strong policy step by the RBI against a whole industry has consequences on the fairness of our regulators, given their quasi-judicial status.”

Also Read, Will Bitcoin Ever Replace Fiat?

As per the 180-page judgement copy, which was accessed by the ET, it stated,

“the petitioners are entitled to succeed and the impugned Circular dated 06-04-2018 is liable to be set aside on the ground of proportionality.”

The Internet and Mobile Association of India is looking forward to working jointly with the government and the Reserve Bank of India to form a constructive framework of policies on cryptocurrencies for India.

Nischal Shetty, Founder and CEO of Bitcoin exchange platform WazirX, said

 “Historic day for Crypto in India. We can now innovate. The entire country can participate in the Blockchain revolution.”

In an interview with DataQuest, Fernando Angula, the Head of Communications at SEMrush, said,

“The investment on cryptocurrency was the first place so they are searching, where to invest, what is the best cryptocurrency, how to get cryptocurrency to transform into rupees or how to get physical money about that?”

Cryptocurrency has been a limelight talk in almost every aspect of financial institutions or technology. It creates opportunities and encourages more advancement in the field. A regulated form will keep the major hurdles or the least some hurdles at a bay and would create a sense of security and safety if governed. India is the second-largest country with respect to population, the more the people, the more the awareness, the more the usage and the more the hype!