The Reserve Bank of India (RBI) has officially announced the reversal of the restriction it placed on cryptocurrency activities in the country months after the court compelled it to withdraw its embargo.
A recent report by local Indian news outlet Inc42, it was confirmed that the RBI has officially lifted the ban following an order from the supreme court of India which squashed the ban.
It would be recalled that the RBI on April 6, 2018 declared it illegal for all financial organizations to partner with cryptocurrency start ups, this harsh measure heavily affected a lot of crypto exchanges and it brought about a huge resentment to crypto entrepreneurs and traders as it sent some of them out of business.
RBI claimed that crypto firms stand to put the banking system in risk.
The Supreme Court, in its ruling, in March 2020, said the Indian citizens have the fundamental right to trade and create new cryptocurrency industry and exchanges. The court then enforce the RBI to withdraw the ban.
The apex court further said that the RBI had failed to provide evidence to back up their allegation that cryptocurrency will put the banking system at risk, however, the court said that the banking system have been and would continue to remain.
Although, the court’s verdict stirred up joy and jubilations in the hearts of the crypto entrepreneurs and crypto traders, many Indian startups have not been able to capitalize on the ruling as they remain unclear on whether to categorize Bitcoin as a commodity, goods, services or as a currency.