- The Supreme Court in India made a big movement in the crypto space earlier this year by lifting its bitcoin ban.
- Despite the ruling, the country was still flummoxed with questions with some banks refusing to offer their services to businesses relating to cryptocurrency.
The Supreme Court in India made a big movement in the crypto space earlier this year by lifting its bitcoin ban. This ban had been imposed by the reserve bank of India and restricted banks from service in crypto-related companies in the nation. Despite the ruling by the Supreme Court, the country was still flummoxed with questions with some banks refusing to offer their services to businesses relating to cryptocurrency.
Despite this, the reserve bank has given some clarity in regards to its stance on trading bitcoin and other crypto assets in the nation. They have said that there are no restrictions in place for banks to avoid servicing crypto traders or companies relating to the industry.
The reserve bank of India announced that bitcoin trading and other related activities towards the industry would be banned throughout the country two years ago. As a result of this any bank found working with the crypto business would’ve faced fines and other such consequences. So it came as a great surprise and a well-needed respite from crypto winter and the Supreme Court found a list of the two-year ban that deemed it illegal. Despite this it was still unclear as to how they could work with banks as some of them were refusing to comply with the ruling from the Supreme Court.
Now, the Supreme Court ruling did not specifically state that local banks need to comply with the lifted ban. But in an effort to seek further clarification on the topic, the co-founder of the Unocoin platform based in India, BV Harish filed a right to information request at the end of April. According to a local news outlet, Inc42, the co-founder asked the reserve bank whether it had prevented financial institutions from providing bank accounts to crypto platforms and crypto traders. The news outlet reported:
“Bankers have been saying that they need new RBI circulars mentioning that there are no more restrictions for them to provide bank accounts for crypto businesses. Now, we have received a positive response from the RBI.”
Now it seems that the reserve bank of India has confirmed that bitcoin trading is fully legal in the country meaning that it is open to more than 1.3 billion people of the nation.