The Indian Supreme Court eliminates veto against transactions made with cryptocurrencies

The Indian Supreme Court eliminates veto against transactions made with cryptocurrencies

The Indian Supreme Court allowed banks of this country to manage cryptocurrency transactions originating from exchange bureaus and, this way, annulled the veto that the Reserve Bank of India had imposed.

The veto had been in force since April of 2018, when the Reserve Bank demanded that local financial institutions to break off all contacts with persons or businesses linked to cryptocurrencies, especially with Bitcoin. This decision provoked a noticeable decrease in the volume cryptocurrency exchanges in India and more than a few exchange bureaus to shut down their businesses.

However, not even the support of the Supreme Court will terminate breaking the cryptocurrencies ecosystem in India, since a government panel recommended in July 2019, prohibiting all cryptocurrencies and establishing penalties of up to 10 years in prison, as well as enormous fines for those who deal with cryptocurrencies. In addition, this panel suggested creating an official cryptocurrency for local use and regulated by the Reserve Bank of India.

The government hasn’t implemented any of these recommendations; however, neither has it established regulations regarding cryptocurrencies, so the doubt persists over what New Delhi’s position on cryptocurrencies will be. This uncertainty puts a hold on possible investments and sows doubt among startups linked to cryptocurrencies.