India banks re-authorized to deal with crypto exchanges

The Supreme Court indian canceled the anti-crypto circular of the Reserve Bank of India. Companies specializing in cryptocurrency, including stock exchanges, will again be able to access banking services.

The Supreme Court of India ruled in favor of the Internet and Mobile Association of India (IMAI) in the case between the lobby and the Reserve Bank of India (RBI) and its circular to ban trading in cryptocurrencies like Bitcoin in India.

Cryptocurrency trading will now be allowed, ”said the Supreme Court, according to the TimesofIndia.

In 2018, the RBI had published a circular prohibiting Indian financial institutions from serving exchanges. A measure that had largely curbed the cryptocurrency trade in the third largest economy in Asia.

Investments had stopped and entrepreneurs were moving away from setting up businesses in the area of crypto and some blockchain, which will change now that the Supreme Court has declared that the RBI circular was unconstitutional“, Commented Nischal Shetty, CEO of WazirX, a crypto-exchange bought by Binance.

However, the sector still faces significant obstacles. This summer, a group of lawmakers indeed recommended a complete ban on cryptocurrencies. He even offered to impose a sentence up to 10 years imprisonment for citizens who trade these types of assets.