Supreme Court in a historical order has lifted the banking ban on cryptocurrencies put by RBI.
Finally the day arrived which Indian crypto community was waiting after Tareekh pe Tareekh. Supreme Court has given the judgement and lifted the banking ban which was affecting the nascent crypto sector negatively.
Mr. Ashim Sood hailed as hero as he impressively wooed the judges by exciting and smart arguments which RBI has no answers.
The judges seem very knowledgeable about the nascent technology.
Who knows if they have bought BTC, ETH themselves and wanted to end the ban eagerly..
RBI ban was challanged by many exchange startups based in India collectively known as IAMAI( Internet and Mobile Association of India). Some exchange shut the shop after the banking ban and some tried new techniques like P2P to stay afloat.
Neverthless the ban made a very negative impact as volume and liquidity in the exchanges was down and people were trading mostly in international exchanges like Binance and using Indian exchanges for just INR conversion. INR liquidity became huge problem after the ban.
- Many shut down startups which were doing very well before banking ban may be restarted , like Koinex.
- The liquidity and trading volume in crypto exchanges will start to increase.
- More crypto startups and investors will make entry to Indian market.
- P2P and Cash trading will reduce effectively reducing money laundering as most of the Indian exchanges has heavy KYC requirements, specially who deals in INR.
- Market will react positively as India is a huge future market for crypto, foreign investors will gain confidence in investing in Indian crypto startups.
- Crypto Community and users have to remain cautious as banking ban lift means alot of scammers will try to sell you ponzi schemes again. So always do your own research before investing and buying any crypto. 2017 Icomania and subsequent crash has already shown the negative effects of no regulation.
- RBI will mostly try to push Indian government to bring the Crypto bill in parliament.
- Crypto Currency regulation draft bill which advises to ban cryptocurrencies altogether will now be reframed to regulate the sector in positive manner as RBI failed to stop trading after banking ban and now government knows that it can’t be banned so only positive regulation is the way forward,just like in Japan, Europe, US etc.
The lifting of banking ban shows the power of Indian Judiciary. People can challenge big government entities like RBI if they think they are acting against there interests.
Market will react positive in short term, crypto startups will make sugary announcements to onboard new users.
All in all happy times for indian crypto sector has started.
Write in comments what do you think how will market react and do we get an announcement from shut startups like koinex soon ?