Sunday, March 8, 2020
On March 6 the Supreme Court of India struck down the Reserve Bank of India’s (RBI) ban on financial institutions providing banking services to cryptocurrency businesses. However, the decision is not final, and embedded in the text of the judgment are multiple red flags.
In addition, a draft bill to ban cryptocurrencies, released on Feb. 28, 2019, could still move through Parliament. The partial court victory and the possibility of legislation moving forward mean that crypto’s legal status in India remains vulnerable, experts opined. However the court verdict will reduce friction for crypto startups, attract funding, and boost innovation, the lack of clarity on the legality of the technology can open a new front. Getting a regulator that can set things in motion is a challenge to be addressed soon.
