For cryptocurrencies, the Bank of India issued a notice prohibiting transactions in 2018, but recently India suddenly lifted the encryption ban. This news immediately attracted everyone's attention. It not only opened the door to cryptocurrencies for billions of people in India, but also for It is also exciting news for the entire encryption market.
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Bank of India bans cryptocurrency transactions
In fact, India was one of the first countries to get involved with cryptocurrencies. As early as 2012, India had already started small-scale Bitcoin transactions. By 2013, some businesses including bars and restaurants began to accept BTC payments, followed by a number of encrypted trading platforms, such as: BtcxIndia, Unocoin, Coinsecure, Zebpay, Koinex, etc.
But in 2018, the Reserve Bank of India first issued a public warning, requiring consumers, cryptocurrency holders or trading centers to be careful about the risks posed by cryptocurrencies.
On April 5, 2018, the Reserve Bank of India (RBI) ordered all regulated banks to end all banking relationships with cryptocurrency exchanges and traders within three months. The ban is scheduled to be enforced on July 6.
All regulated financial institutions are required to stop providing services to businesses and individuals dealing in cryptocurrencies. These services include maintaining accounts, registration, trading, settlement, liquidation, granting loans against virtual currencies, accepting virtual currencies as collateral, opening exchange accounts for dealing with virtual currencies, and transferring funds within accounts related to the buying and selling of virtual currencies or collect money.
If anyone is found to be involved in any of the operations mentioned in the ban, the RBI will close the account after 30 days of notifying the user. Once this period of time has elapsed, users will not be able to withdraw or use their funds.
However, as soon as the news came out at that time, it caused dissatisfaction among Indian cryptocurrency exchanges. Under the strong suppression of the Reserve Bank of India (RBI), many Indian cryptocurrency exchanges chose to sue the Central Bank of India (RBI) to the Supreme Court in April .
In May, the court set a hearing date for July 20, two weeks after the ban went into effect. However, the Internet and Mobile Association of India (IAMAI) then made a request to the court to bring the hearing forward. As a result, the court brought forward the hearing and held the first hearing on July 3.
The Supreme Court of India finally ruled that it refused to provide a buffer time for implementing the ban of the Reserve Bank of India (RBI), and the ban was implemented as scheduled.
This is a victory for the Reserve Bank of India (RBI) and a huge blow for virtual currency exchanges and traders. The ban is to be enforced as usual, with banking services for exchanges and their users completely cut off.
In January 2019, other banks in India also began to issue warnings to customers: If they are found to be involved in the use of cryptocurrencies, their bank accounts will be closed. India strives to completely block the transaction and use of cryptocurrencies.
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India's Supreme Court Cancels RBI's Cryptocurrency Ban
After more than a year of ban, the Indian cryptocurrency market finally saw the light on March 4.
India's Supreme Court finally ruled on the RBI's banking ban on Tuesday. Indian news platform Crypto Kanoon reported from the court: “The day of judgment has finally arrived.” The verdict was a result that pleased the crypto market.
A three-judge court has ruled that the Reserve Bank of India (RBI) ban on the country's banks from providing services to cryptocurrency-related companies is unconstitutional.
The ruling means that banks in the country will now no longer be able to deny services to individuals, exchanges or industry startups in the cryptocurrency industry. Kashif Raza, co-founder of Crypto Kanoon, an Indian cryptocurrency regulatory news and analysis platform, shared his analysis of the potential impact of the ruling.
"This is a historic day," said Raza, who said he believed the ruling would "have a positive impact on the entire ecosystem."
He said the court's involvement would embolden those on the fringes of the industry, adding that new exchanges were expected to launch, trading platforms that had been closed would reopen, and trading volumes and registrations would rise.
While the future is not a foregone conclusion, Raza believes that the RBI's loss in the Supreme Court is likely to make the government wait for a while before rushing forward with the bill.
He tentatively suggested that one of the countermeasures is that the government will convene a new committee to better understand and analyze the cryptocurrency industry before making any further decisions.
On the second day after the court's judgment, that is, on March 5, Indian Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) stated that "India's Supreme Court overturned the country's central bank's ban on cryptocurrencies" and stated that it will Study the judgment of the Supreme Court of India to decide on the next steps.
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Become a major positive for India and the entire cryptocurrency market
At present, the Supreme Court's resolution of the ban of the RBI can be regarded as the biggest positive for the fundamentals of the cryptocurrency market this year. Allowing Indians to trade cryptocurrencies is expected to further boost the prosperity of the Indian crypto market.
A report titled "Emerging Jobs 2020" by LinkedIn, the world's largest professional social networking site, predicts that blockchain developers will become the most important role in 2020.
Luchi Anand, director of talent and learning solutions for LinkedIn India, said that digital currency transactions are increasing, so the industry is increasing investment in blockchain, and the strong demand for blockchain technology talents will "blockchain development". the "in the first place.
According to data from blockchain company Hardfork, India ranks sixth in the world in the number of blockchain patents.
Coinbase CEO Brian Armstrong (Brian Armstrong) commented on the Indian Supreme Court overturning the central bank's cryptocurrency banking ban: "If this is true, it will be a big step for the development of cryptocurrency in India. Any country, if it cannot Developing expertise in this area, nurturing and helping start-ups will make it difficult to become a global financial player in the long run. The financial centers of the world have largely embraced it to maintain their position.”
Wan Hui, founding partner of PrimitiveVentures, said on Weibo: "It should be the biggest positive fundamentals this year.
Xu Kun, chief strategy officer of OKEx, also said that the Indian market has a huge Internet demographic dividend, with nearly 600 million Internet users, and the inflation of the Indian rupee is serious, and the public's demand for cryptocurrencies with both payment and value storage functions has always been strong. Previously, due to policy reasons, on-site transactions were restricted, but the popularity of off-site Bitcoin purchases has always been high, with daily trading volumes in the millions of dollars. This is a market worth expanding.
Xu Kun also revealed that at the beginning of the year, OKEx has established partnerships with the two leading exchanges in India, CoinDCX and BitBns, and India is also an important part of OKEx's global layout.
Local cryptocurrency exchanges in India also believe that this will bring new opportunities to the country's cryptocurrency market.
Of course, it is also a good thing for the Bitcoin market. It is not to say that 1.38 billion people will buy Bitcoin immediately, but if 1% of Indians buy Bitcoin for the first time in the next few years, this already represents almost 14 million new entrants.
According to Bitby Finance reports, Bitcoin currently has about 6 million unique users, and once new investors from India enter the market, the final number may double this number.
Judging from recent years, the essence of Bitcoin's rise is driven by the entry of funds into the market. Therefore, when a large number of new users flood in, the demand for Bitcoin will further increase, and the supply will also decrease accordingly. get continued to rise. Whether in the short or long term, it will have a huge impact on the entire encryption market.
I believe that encrypted digital projects in many countries are also gearing up to enter the Indian encrypted market. For 2020, this may really be the biggest benefit of the encrypted digital market.
