India reopens to crypto: the ban is unconstitutional

The news coming directly from Mumbai indicates that the Supreme Court of India has lifted the ban of the central bank which prohibited the facilitation of banking transactions aimed at purchasing crypto.

The news starts spreading on social media: the ban of April 2018 is unconstitutional.

Breaking:
Supreme Court of India has struck off Reserve Bank of India's (RBI) banking ban against #Crypto. The Court held that RBI Circular dated 6th April 2018 is unconstitutional.

— KoinX (@getkoinx) March 4, 2020

The statement on the legitimacy of the ban was submitted in the context of an ongoing legal proceeding between RBI and the Internet and Mobile Association of India (IAMAI), represented by Ashim Sood. 

A panel of three judges led by Rohinton F. Nariman supported the petition against restrictions on the cryptocurrency market.

Startups and industry bodies that challenged the Reserve Bank of India’s April 2018 decision to ban banks from offering any services in support of digital currency won.

One of them is Nischal Shetty, CEO of WazirX, who rejoices by saying: 

Crypto has won in India 🇮🇳

We won! #IndiaWantsCrypto

— Nischal (Shardeum) 🔼 (@NischalShetty) March 4, 2020

This verdict is a big step forward for the whole industry. In a country where minds are ready and technically ahead of the software world, this restriction has greatly limited investment and private initiatives.

While the Indian central bank is trying to develop its digital currency so as not to be technologically unprepared, it is now faced with a legal precedent that hinders its plan to suppress cryptocurrencies. 

The restrictions seem to be motivated by a protectionist spirit aimed at reducing the impact on the national economy caused by bad players able to take advantage of an unregulated sector.

The perverse effect of such measures appears to be a great limitation to the opportunities lost by those who would have been able to seize the opportunities at the right time.

That is why the great work of the group before the Supreme Court has set a precedent that could radically change the situation in India.