It is good news for the traders and startups who can deal with cryptocurrencies without any hassles. Yes, this is true. If you keep a tab on cryptocurrency latest news today, then you will come to know that there will no prohibition on cryptocurrencies from the banks for offering accounts to those who are interested in dealing cryptocurrencies. The matter came to light after following the RTI filing on 25th April. It raised concerns on whether there has been any denial by the central bank to banks in giving accounts to the entities linked with cryptocurrencies.
Dating back to the year 2018, there came a circular where RBI had strictly banned the trading of cryptocurrencies. It denied any financial firms to partner with any other firm that is someway linked to cryptocurrency. However, in the current year (2020), The Supreme Court of India rejected the order of RBI, resulting in adhering to the order of apex court. Besides no prohibition on cryptocurrency exchange firms or even startup companies, there is no clear fact about cryptocurrencies to be classified into goods, commodity, service, or currency.
During the ban, some startups could not back on the decision of the apex court. A co-founder of popular crypto exchange had filed an RTI petition accusing banks of restricting trading in cryptocurrency, even after the law stating no prohibition on cryptocurrency dealing entities by the apex court. To this, bankers stated the need for new circulars from RBI, clearly stating the no restrictions on helping crypto business in giving bank accounts. Later on, they received a positive reply.
A CEO from a reputed crypto exchange stated his opinion about the Supreme Court confirming no prohibition on cryptocurrency dealing entities. There has been a kind of confusion that brewed amongst the banks, despite the apex court’s decision. These banks were, however, waiting for the confirmation of RBI’s statement about the matter. Now there can be no further hurdles in the way of businesses dealing in cryptocurrencies.
According to the Supreme Court order regarding no prohibition on cryptocurrency dealing entities, generating a new cryptocurrency trading industry is the right of every person. The important is that it must adhere to the existing provisions, and must not violate any fundamental rules.
If you have been abreast of breaking crypto news, then you will come to know about why the apex court pulled off the ban from cryptocurrency. It was all because RBI could not prove cryptocurrency as a threat to the banking system. Moreover, the court also analyzed that the banking system is indeed the lifeline for crypto exchanges.
Amid law stating no prohibition on cryptocurrencies dealing entities, crypto platforms had stated to RBI about their financial institution status. But despite it, banks are reluctant to accept working with them indicating unclear directions.
Having no prohibition on cryptocurrency dealing entities, the Supreme Court of India has paved a clear way to businesses and startup firms to deal with crypto business without any hassles. Ever since the emergence of cryptocurrency, the banking sector became very much insecure. The RBI doubting on this new financial system banned it. However, the banned got pulled off by the apex court in the current year, as RBI failed to convince about how cryptocurrency can become a threat to the banking system. But even after the ban, the restriction of banks continued, just to get the confirmation from the apex bank. Now finally, there are no more hurdles in the way of cryptocurrency.