Today supreme court of India gave a historic decision on cryptocurrency. The supreme court of India has finally lifted the ban of cryptocurrency which was announced by Reserve bank of India in the year 2018. Citing the reasons for fraud, money laundering, illegal transaction and funding, RBI issued a circular to ban cryptocurrency in India. On many occasions, the government, along with the public bank, had warned the citizens about the risks of cryptocurrencies. Cases of bank accounts getting frozen were also reported due to cryptocurrency trading.
However, The Internet and Mobile Association of India, the organization of cryptocurrency trading in India, challenged this ban and said that the Indian government had not banned cryptocurrency. Moreover, the Reserve Bank does not have any authority to make such an order. The Reserve Bank had argued that such a step was necessary to protect the banking system from any possible cybercrime.
Now three-judge Bench of the supreme court which included judges like Justice Rohinton Fali Nariman, Justice S Ravindra Bhat and Justice V Ramasubramanian gave a historic decision on the future of cryptocurrency and uplifted the ban. It was proposed in the draft Regulation of Official Digital Currency Bill, 2019 that Indians who purchase and trade cryptocurrencies will be heavily fined and can be sentenced for ten years of prison time. Now Indians can safely trade cryptocurrency for purchasing items online.
According to Nischal Shetty, CEO of WazirX, “Investments had closed, and start-ups were tarrying away from commencing a venture in the crypto and blockchain segment in India which will change now that the Supreme Court has said that the RBI ban was unconstitutional.”
The government does not issue cryptocurrency; therefore, it can’t be regulated by any government. It can only get mined through specialized computers and is used for transactions. Today, there are several types of cryptocurrencies like bitcoin, XRP Ripple, etc. Bitcoin among the rest of the cryptocurrencies have the highest value. It has a market cap standing at $161 billion. Moreover, these virtual currencies use encryption techniques to produce currency units and verify fund transactions, making them quite safer and unhackable.