India Switches Stance on Crypto
Earlier in March, we talked about how India proposed a law that would ban all cryptocurrencies. In 2019, a government panel recommended jail time of up to 10 years on people who trade, hold or deal in cryptocurrencies. Indian officials called them Ponzi schemes and said they need to be banned to protect investors. Today, I have good news for lovers of crypto in India—cryptocurrencies and exchanges are not banned.
On Monday, India’s central bank said a 2018 circular prohibiting financial institutions from supporting cryptocurrency transactions was overturned by the country’s top court last year.
The central bank said, “It has come to our attention through media reports that certain banks have cautioned their customers against dealing in virtual currencies… by referring to the RBI circular dated April 06, 2018…The circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.”
While the central bank said cryptocurrencies aren’t banned, it’s important to note they didn’t directly endorse cryptocurrencies. Crypto lovers in India are already interpreting the central bank’s stance as an endorsement of the industry. Avinash Shekhar, co-CEO of ZebPay, India’s oldest cryptocurrency exchange, said, “This is positive news for the entire crypto industry—businesses, stakeholders, and investors. Investing in crypto has always been 100% legal in India, and the new RBI circular clearly confirms the right to do business with crypto firms.”
It’ll be interesting to see how the regulatory framework of cryptocurrency continues to evolve in India.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
