Indian Supreme Court Authorizes Cryptocurrency Trading

The Supreme Court today rejected the Reserve Bank of India (RBI) order of 2018, which prohibitedbanks to provide cryptocurrency companies with their services.

The panel of three judges supportedA petition from the Internet and Mobile Communications Association of India (IAMAI), which disputes the 2018 RBI circular banning the service of cryptocurrency companies.

On April 6, 2018, the RBI issued a decree,which forbade regulatory entities to “provide any services in relation to virtual currencies, including accounts related to the purchase or sale of virtual currencies”.

Representatives of the Association said that the bancontributes to the development of the shadow market and actually prohibits legitimate business activities using digital currency. Due to the ban, many representatives of the crypto industry have left the country or gone into the shadows. The court accepted the arguments of IAMAI representatives and repealed the directive of the Reserve Bank of India.

Recall that earlier the Supreme Court several times refused to cancel the decision of the RBI.

The Government of India is taking a tough stance ontowards cryptocurrencies. On the one hand, the authorities support the idea of ​​creating a national blockchain ecosystem and a single national digital currency. On the other hand,  they are trying to strictly limit cryptocurrency turnover and the use of private digital assets in the country.