Amids the sad new of Russia banning the use of cryptocurrency for payment and transaction, and also between the COVID-19 crisis a good new came for indian crypto holders as The Reserve Bank of India( RBI) on wednesday announced the lifting of ban on cryptocurrency which lasted for two years.This decision from RBI has been a great relief for all the crypto industry in india.
Why was cryptocurrency banned in india?
In order to curb the ring fencing of the india's finacial system The Reserve Bank of India on april 2018 imposed the ban on cryprocurrency trading . According to which all banks and other financial institutions are barred from facilitating services related to digital assets like money transaction in accounts relating to the trading of cryptocurrency.
Why is the ban lifted?
The banning of cryprocurrency issued by RBI on April 6, 2018 was challenged by Internet Mobile Association of India (IMAI) and other petitioners in Supreme court. The association claimed that the banning was against the moral ground as no prior studies were conducted before. After several hearing the Supreme court of india finally order to revoke the banning order from RBI.
Indian crypto scenario after the lifting of ban
Before the lifting of the ban the only way to buy or trade cryptocurrency in india was through a a P2P (peer-to-peer) trading exchange platform. Because the p2p exchange method support many payment system where any one can buy or trade cryprocurrency using their local money. With the lifting of ban, the crypto industry in india is growing rapidly. Several cryptocurrency exchanges sees an increase in trading volumn of 10x then before and also an increase in new users amids this COVID19 crisis. So with the proposal for lifting the ban a new chaper of cryptocurrency is about to be started in india as the Indian government have also start dicussing whether to regulate cryptocurrency with the central bank.
While country such as Russia had banned the trading and transaction of cryptocurrency, some country like Japan have backed it by accepting Bitcoin as a legal currency and allowing exchange and transaction. Accordingly a big question also start arises to all crypto owner in india "will india soon regulates cryptocurrency ? ". A question which is too early to answer.
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This is great news. Indians must be very happy with this new development. Many crypto currency holders will now be able to u make use of their coin. This is great