There is finally some good news for cryptocurrency traders in India. The Reserve Bank of India (RBI) has finally decided to allow cryptocurrencies within the subcontinent. However, traders will have to follow certain new regulations which will be mandatory for all cryptocurrency transactions.
Government Panel Not In Favor Of Banning Digital Currency
According to reports, a panel that was formed by the government of India to probe the matter does not seem to be in the favor of completely banning virtual currencies. Instead, it is planning to allow cryptocurrency trading with riders. On April 6 this year, the RBI issued a blanket notice prohibiting dealing in virtual currencies. The order made it mandatory for banks, e-wallets and payment gateway providers to withdraw their support for crypto trading platforms and exchanges within the stipulated period of two months.
As per the order, the leading financial institutions of the country were also asked to stop doing business with outlets dealing with digital currencies in India. To ensure that the order issued by the central bank is strictly followed, nationalized banks put pressure on the traders and cryptocurrency exchanges to stop using their accounts for virtual currency trading.
Supreme Court May Not Approve Of Ban On Bitcoin (BTC)
Irked by this forceful approach, the exchanges and traders approached the Supreme Court against the decision of RBI. Many crypto supporters signed the online petition. The Supreme Court took note of all these developments. Now the hearing for the same is scheduled for July 20. According to crypto enthusiasts, the regulation was passed without any research or investigation. Moreover, the bank did not consult stakeholders or experts on the matter.
Hence in the absence of reasonable grounds, there is a strong probability that the court will not approve the ban of RBI on Bitcoin (BTC) and cryptocurrency.
BTC hit a two-month low a few days ago due to different regulatory and security concerns, especially after the news of hacking of South Korean cryptocurrency exchange Coinrail came to the fore.
Last year Bitcoin soared more than 1,300%. But this year BTC is down 53%.