There was a ban in India over crypto dealings by Reserve Bank of India (RBI) which have been in place from April 6, 2018 but very recently an order enacted by the Supreme Court of the country annihilating the ban. The decision of the top court is bringing laughter to the crypto community. The court thinks the ban to be unconstitional.
Procedures of converting Indian rupees into crypto, cash-in and cash-out from bank accounts to crypto exchanges have become easy to the Indians. This opportunity can make India one of the largest crypto markets. The market situation of crypto was really well before RBI ban contributing about $50 million to $60 million per day.
Trading volumes got highly affected and dipped right after the decision taken by RBI and banks started discouraging users to involve in crypto dealings. Even some banks were warning users through emails to block credit cards if any transaction relating to virtual currencies takes place with it. These restrictions forced crypto users to use peer-to-peer crypto trading platforms to directly transfer cryptocurrencies into individual accounts without intermediary. But with the latest decision of Supreme Court, users are expecting to see a good condition in near future.
Crypto exchanges in the country now are able to enable banking channels for fiat deposit and withdrawls. It is also expected that the average trading volume will return to its previous stance like the volume will continue rise as high as $50 million to $60 million on a daily basis. The new judgment of Supreme Court is supposed to draw the attention of investors to the market quashing the misconception that cryptocurrencies are illegal.
Things to be ensured
Though the decision of Supreme Court will be very soon in place, cryptocurrency exchanges should now focus on extending user data privacy, know-your-client (KYC) and AML policies because it will increase trust and interrupt crimes. Cashaa, the banking platform is a gateway to consumer-centric and affordable financial products aimed at consumer adoption of Blockchain without having to understand the technical details of Blockchain Technology, can provide a powerful system very helpful for RBI to understand the anti-money-laundering issues coming because of onboarding crypto companies is needed.
It is thought that the decision of Supreme Court instigate to establish favorable regulations. But government could possibly ban cryptocurrencies despite the court’s decision. There is still a bill that Parliament has to discuss. The Indian government submitted a draft crypto bill named entitled ‘’Banning of Cryptocurrency & Regulation of Official Digital Currencies’’ to the Supreme Court in August 2019 to ban the use of cryptocurrency but later the government did not introduce the draft in the next two session. That is why existence of crypto in the Indian market is yet unclear and at risk.