Why The Indian Supreme Court’s Recent Judgment On Bitcoins Is Good News
In the initial years, people are suspicious that the crypto market is a scam. Additionally, due to the Mt. Gox case and Silk Road case, people became more skeptical about the market. However, investors started building trust due to the continuous growth of Bitcoin and some major other digital coins.
Cryptocurrencies are getting more acceptance day by day. The government of different countries is taking constructive steps towards the crypto market. The main reason behind this is due to the improvement in security features and the development of robust digital infrastructure.
Cryptocurrency Regulation in India
In India, Bitcoin and some other cryptocurrencies started operating since their inception. But there was no regulation or prohibition in the usage of bitcoin within India. Citizens of India can trade cryptocurrencies without any issues since April 2018. After that, a circular issued by RBI imposed some restrictions on the usage of cryptocurrencies. It did not ban the use of digital currencies, but it restricted the banks to not involve in such type of deregulated currency system.
Recently, the supreme court has made the circular of RBI invalid by passing judgment on the usage of cryptocurrencies. It has passed a 180-page long judgment where it clarified that the RBI can regulate the digital currencies. However, the ban which was imposed on the use of virtual currencies mentioned in the circular is not appropriate. And it also made clear that the use of cryptocurrencies for any business purpose or investment is legitimate under Article 19(1)(g) of the constitution.
The IAMAI vs. RBI Arguemnt
In a circular dated April 6, 2018, RBI imposed restrictions on financial institutions and banking systems not to deal with any form of financial services and business settlement related to digital currencies. It also prohibited the banks to cut relationship with such organizations or persons who deal with virtual currencies or provide any services.
After two years, the supreme court concluded the hearing of the circular and rejected the statement of the circular by RBI. The court challenged the statement of the circular and passed a judgment not to ban banks and other financial institutions for providing financial services to the organizations or persons dealing with bitcoin or any digital assets.
The petition is filed by an organization named “Internet and Mobile Association of India”. The organization provides online services in India. Secondly, the petition also mentioned that the persons who are providing crypto services are the young entrepreneurs of the country. Again, the individuals are graduated from some of the premier technical institutes of India.
Why the judgment passed by SC of India on bitcoins is good news?
Everyone knows that India is the second-largest economy in the world in terms of population. Today, it has the highest number of the youth population in the world. So the attention of every country is focused on India. Every global company, large corporations, investment banks want to invest in India.
As a result, India has great potential for the future in terms of business and investment. This is also true for the crypto industry, if digital currencies can succeed in India it will succeed in the whole world. However, the circular by RBI not only disappointed the Indians, but it had also disappointed every entrepreneur and organization which are dealing with cryptocurrencies. But the judgment which is passed by the Indian Supreme Court is good news.
It is good news for the crypto traders, companies which are providing digital currency trading platform, entrepreneurs who are involved in cryptocurrencies. Along with that, people who are investing and involved in the underlying technology blockchain will also get the opportunity to develop good infrastructure for digital currencies
The above information clarifies that the use of bitcoin and other virtual currencies in India is legitimate. This shows that the government will take positive steps toward the crypto market in the future. So this is a great opportunity for the investors and traders of India.
No doubt, the crypto market involves high risk but the rewards are also fruitful. So if you are planning to invest in cryptocurrencies learn how to invest in the crypto market from the Bitcoin Compass official site. Now please share your views on this and you can share your queries in the comments below.
Amanda Byers is a graduate of Columbia, where she played volleyball and annoyed a lot of professors. Now as Zobuz’s entertainment and Lifestyle Editor, she enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.