Crypto Trading Now Legit in India
If you have been following the regulatory updates within the cryptocurrency sector, then you would know that things in India have taken a drastic turn. In 2018, the Reserve Bank of India (RBI) placed a ban on cryptocurrency trading, instructing banks not to facilitate crypto transactions with banks or individuals.
The ban made it impossible to trade cryptos in India. Thus, leading to some cryptocurrency startups in the country to move their businesses elsewhere.
However, things changed earlier this month when India’s Supreme Court on Wednesday overturned the ban imposed by the RBI. This comes after two years of appeal from several cryptocurrency entities within the country. The ruling, which was delivered on March 3, by Justice Rohinton F. Nariman, overruled the RBI’s circular on the grounds of disproportionality.
The cryptocurrency trading ban, which has been in effect for the past two years, has been affecting the crypto trading activities in the world’s second-largest country by population. However, a group of petitioners, including the trade body the Internet and Mobile Association of India, kept challenging the RBI’s circular. The organization kept arguing that India should be learning from other countries who are working on launching their virtual currencies instead of banning cryptocurrency trading.
After the ruling, some prominent cryptocurrency figures in India described it as a historic moment. Nitin Sharma, a tech investor, was happy with the verdict and termed it as memorable. He added that the Supreme Court ruling had brought clarity to the matter, and they can now move forward to innovations within the cryptocurrency space.
Trading Ban Lift a Win for the Crypto Sector
The recent ruling by the Supreme Court is a win for the crypto space in India. Some proponents, like the CEO of the largest cryptocurrency exchange in India, WazirX, had predicted this a few months ago.
In an interview in December last year, Nischal Shetty stated that he believes the Supreme Court would overrule the ban on cryptocurrencies due to the progress made by the associations and the crypto space at large in India. When that happens, the crypto companies would be adequately focused on improving services to residents of the country.
According to Nischal Shetty, the cryptocurrency space would provide banking services to over 300 million unbanked people in India. This is a vast number, and achieving that goal would help push the adoption of cryptocurrencies even higher.
Following the lift on the central bank’s ban, trading volumes on cryptocurrency exchanges in India have been skyrocketing. WazirX, which was recently acquired by the world’s largest exchange Binance, has seen a massive increase in cryptocurrency trading volumes, with Nischal Shetty stating that the changes would now enable banking channels for fiat deposit and withdrawals.
Nischal Shetty expects trading volumes on crypto exchanges in India to grow by ten times over the coming months and years. At the moment, most of them are recording millions of dollars in daily transactions but expect it to grow substantially in the new future.