SUMMARY
The Supreme Court (SC) has lifted the 2018 ban on cryptocurrency trading in India
But the RBI is set to challenge SC’s decision
Meanwhile, South Korea has also legalised cryptocurrency, but it is complicated
The Indian crypto ecosystem is celebrating the recent judgement by the Supreme Court (SC) in lifting the banking ban on cryptocurrency trading in the country. In place since April 2018 as per a Reserve Bank of India (RBI) directive, the ban had crippled the crypto market in India. Many blockchain experts and crypto enthusiasts believe that the crypto and blockchain space will mushroom in the months to come with more startups and investors venturing into the ecosystem.
Sharing the excitement with Inc42, crypto exchange ThroughBit founder Abhishek Gopal said that the court took time but has come up with a positive decision. This, in a way, will have a ripple effect in the crypto ecosystem, where banks will allow transactions, and a lot of services around crypto would be launched.
In April 2018, RBI had virtually banned cryptocurrency trading in India. Post this, a lot of startups had shut shops and crypto enthusiasts lost a lot of money because of this decision. After the recent SC’s decision, RBI-recognised banks are now allowed to facilitate deals in cryptocurrencies. In other words, any customers can now legally buy, sell or transfer digital currencies.
But the RBI is not happy with the SC decision and is planning to file a review petition to curb cryptocurrency transactions in India. The regulator body said that it is concerned about the flaws which would come arise with cryptocurrency transactions. Further, it said that allowing cryptocurrency transactions will put the banking system at risk.
Cryptocurrency News This Week:
Here are some of the biggest cryptocurrency news this week.
South Korea Legalises Cryptocurrency
Earlier this week, the South Korean government passed new legislation that is said to provide a framework for the regulation and legalisation of cryptocurrencies and crypto exchanges. Accordingly, it passed an amendment to the country’s financial services to review the niche industry for any flaws, gaps and use of specific financial information.
South Korean President Moon Jae-in will pass and presume the new cryptocurrency law, which is followed by a months-long rulemaking process that is said to provide enough time for exiting startups and exchanges to transition into the law’s new regulatory framework.
Bitcoin Crosses $9K Despite Coronavirus Impact On Markets
Bitcoin is one of the most valued cryptocurrencies in the world and is currently trading at $9,145 compared to $8,821 on Wednesday, March 4, 2020 — the SC judgement day where it lifted the ban of cryptocurrency trading.
According to several cryptocurrency experts, the market is said to be uncertain and is driven by several factors which include China printing money, South Korea crypto legalisation, global market crash, coronavirus outbreak, negative interest rates, long overdue correction and India’s crypto trading legalisation among others.
HashCash To Invest $10 Mn In Indian Crypto Startups
US-based HashCash, a global blockchain and IT services company, recently announced that it will be investing $10 Mn in cryptocurrency and blockchain startups in India. The decision to invest in the Indian crypto market comes after the SC verdict on cryptocurrency trading. Additionally, HashCash will also be collaborating with a lot of local companies in India.
Raj Chowdhury, CEO of HashCash Consultants said that this decision could not have come at a better time, and the company is looking at boosting the Indian economy by expanding its operations, technology and infrastructure and incubating startups in the country.
Crypto Asset Summit Set For Goa
Crypto community in India will converge on Goa on March 9 2020 for the Crypto Asset Conference hosted by crypto startup Coinfinesse. The event is said to bring industry leaders, change-makers, governments, entrepreneurs, blockchain experts together to stir the revolution of blockchain and promote its adoption in the country. The agenda of the event is to make cryptocurrency accessible to everyone and pave a path towards a decentralised asset.
