On Wednesday, the Supreme Court of India made a historic decision. A three-judge bench of the court ruled in favor of petitions by crypto exchanges and startups. As a reminder, the Reserve Bank of India banned local financial institutions form providing banking services to exchanges.
However, the country’s supreme court decided to reverse this decision. It is worth mentioning that, central bank’s decision had a negative impact on the country’s crypto industry. This move forced exchanges to choose from several options. The first one was to close the exchanges. The second option was to relocate to other jurisdictions. Moreover, the third option was to change their business model to crypto-to-crypto and over-the-counter trading.
Interestingly, exchanges filed petitions to the supreme court in 2018. They did not waste time and immediately filed petitions. However, it took time to reach a clear decision. Moreover, it took several rounds of hearings to achieve this result.
Unfortunately, some exchanges ceased to exist while the case was ongoing. This fact shows that the decision of central bank had a devastating impact on several exchanges.
Members of the crypto community and historic decision
Two prominent crypto advocates commented on this decision. According to the founder and CEO of exchange aggregator CoinDCX Sumit Gupta, this decision is going to create new opportunities.
Moreover, the ruling will make it easier to attract investors. He thanked the country’s supreme court for hearing their side of the story. Also, the industry has the potential to help India to become a $5 trillion economy.
Tanvi Ratna is the CEO and founder of Policy 4.0, which works on crypto policymaking in India. According to Ratna, the supreme court’s ruling removed the biggest obstacle for the crypto industry.
However, this decision is not enough to solve all the problems connected with the crypto industry. The local community should convince the Indian lawmakers that crypto has the potential to boost the local economy.