This day will be remembered not only by fans of the crypto from India, but also by hundreds of their partners from around the world. After a long battle, the Supreme Court of India ruled that a banking ban on the crypto sector in India is unconstitutional! Interestingly, such a ban was issued by the country’s central bank itself, so the court’s verdict strongly undermined its authority, and at the same time restored the crypto to the game and allowed them to return from the black economy.
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What did the bank ban on the crypto-bankers in India mean?
Although many Indians still secretly bought and sold cryptocurrencies against the ban, trading them and converting them into national currency was very difficult. The ban on the central bank has definitely cut off any possibility of operation in this country, e.g. exchange of virtual currencies into traditional ones, the work of stock exchanges and the operation of many start-up companies, which were based on cryptocurrencies and lost practically everything overnight, including the possibility of appealing against the bank’s decision.
The banking ban was imposed in India almost 2 years ago and since then, the crypto companies operating in India have been forced to move to the jurisdiction of other countries or even close down their operations. Although some of them moved to the crypto-to-crypto model, excluding the possibility of buying the crypto for traditional currencies, it was also very difficult for the last 2 years.
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What about cryptocurrencies in India now?
Will companies operating outside of India decide to return to them after the announcement of the judgment, which states that the banking ban was not constitutional? It’s hard to say The uncertainty that was so great that it can be assumed that nothing will undo the situation until before the ban.
Won’t companies and promising ICO projects at the time choose to stay permanently in the new ones, safer to regulate countries? It is highly likely that this will happen.
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Will banks provide services to cryptographic companies?
The RBI General, which was declared unconstitutional by the Supreme Court of India, also prohibited banks and other financial institutions from providing any services to the cryptographic industry. Banks were not allowed to set up accounts with companies related to crypto companies, grant them loans, or allow smooth transfers between their contractors. The accounts of three major Indian exchanges, Zebpay, Coindelta and Koinex, were closed. Some start-ups and stock exchanges opposed the ban and it was they who took the case to the Supreme Court.
Once the ban is declared unconstitutional, there is a good chance that the stock exchange accounts will be unblocked and they will be able to use bankers again. The industry hopes to improve its financial liquidity and that from now on they will again be able to work seamlessly with their foreign counterparties and clients.
Time will tell if, despite the court’s verdict, the banks, heavily conflicted with the cryptocurrenciesindustry, which is taking their clients away from them, will really be so eager to open their doors wide to new old clients.