Cryptocurrencies have found an unlikely ally in their quest to become legalized in India, following intense legal battles between companies, consumers, and the Reserve Bank of India.
India’s Controversial Ban on Cryptocurrencies
April 2018 was the beginning of battle against virtual currencies. When the Reserve Bank of India barred all financial institutions from doing business with cryptocurrency exchanges. The result of this ban was drying up liquidity from the affected exchanges and damaging Indian based cryptocurrency investors. The RBI gave banks three months to cut all ties with crypto related companies and customers.July 5th was the official start date of the ban.Their was a big dificulty for companies and customers of india.
The Indian Supreme Court, led by Chief Justice Dipak Misra, ruled in favor of the RBI, upholding the cryptocurrency ban and accepting the RBI’s arguments.It requires all legal currencies to be physical, and to be stamped by the government.
Ban on Crypto by India Was Only Temporary
“I don’t think anyone is really thinking of banning it altogether. The issue here is about regulating the trade and we need to know where the money is coming from. Allowing it as (a) commodity may let us better regulate trade and so that is being looked at,”
the anonymous senior government official said.
Legalization of Sports Betting Could Lead to Crypto Approval
The commission has been preparing a case against the ban on sports betting, which could, in turn, influence future rulings on cryptocurrencies
The final hearing for the case on the legalization of cryptocurrencies will occur on September 11th, and those effected by the ban are hopeful that the commission’s recommendation on using virtual currencies for gambling will carry weight in the case against the RBI.