In April 2018, the Reserve Bank of India imposed a ban on crypto trading that barred various banks and financial institutions in India from availing any services that are related to digital assets and virtual currencies. Following the notice of the ban, several startup companies that were just set to boom in crypto trade had to close down their shops immediately. At that time, India’s virtual currency industry did freeze, because the RBI ban prohibited the use of banking channels for crypto transactions with Bitcoin and other digital assets. As a result, most of the crypto exchanges had to be shifted overseas or had to close down their business. Moreover, the ban had a detrimental impact on the Indian economy that resulted in the country facing huge loss in its initial hold on an emerging and innovative technology, that welcomes a digital medium of exchange.
The move was challenged and argued by petitioners all over the nation and they demanded a sound reason from RBI for taking this drastic decision. Finally, after two long years, the Supreme Court of India, on Wednesday, overturned the ban on crypto trading to which some of the top tech investors called it a “historic verdict” for India.
Following the Supreme Court’s verdict to overturn the ban on crypto trading, many Cryptocurrency companies are looking forward to reviving their plans of investment and expansion of their business in India. Crypto investors are expecting more avenues to come up following the Supreme Court’s verdict to lift the ban in crypto trading that will, in turn, facilitate a crypto ecosystem to be built in the nation. The funding environment will get better for the startup firms as investors will no longer have to be skeptical about the crypto regulations that prevailed two years back in the country. ZPX, the Singapore based crypto firm, and WazirX, the Bitcoin exchange platform, have promptly responded to the verdict of the Supreme Court and have announced to resume their operations anytime soon next year.
Likewise, Kraken, the US-based crypto exchange founded in 2011 that provides virtual currencies to fiat trading, had to halt their operations in India in 2018 following the RBI notice of the ban on crypto trading in the nation. Kraken had long served the Indian market with myriads of financial exchange products like derivatives, futures and spots. Therefore, the lift of the ban opened doors for the Indian markets to welcome Bitcoin and other cryptocurrencies. Kraken is excited to again resume access to the youthful and tech-savvy Indian markets for helping the Indian customers to save funds for the future and securely send funds to their friends and family overseas. To this, Sunny Ray, the Global Business Head at Kraken, said,
“this is an incredibly emotional moment for India. Satoshi created Bitcoin because he felt that central banks were inefficient. The fact that the crypto industry just battled, and won, against the central bank located in the second-most populous country in the world is a massive achievement. We fought for 1.5 billion people to have the right to access crypto.”
Zilliqa, the renowned blockchain platform launched in 2017, for creating smart contracts and dApps have announced on Twitter that all the crypto users from UK and India from now onwards can easily transfer their currencies in INR and GBP into $ZIL at the dAPP named transak.com. Transak, also known as fiat-on/off-ramp, is an application that helps to integrate fiat-to-crypto withdrawals and/or deposits from their users based all over the world. ZIL is the token of the Zilliqa platform. This is an initiative, that aims at resolving scalability issues surrounding the blockchain technology. On the Zilliqa platform, ZIL tokens powered by the ERC 20 tokens are used to pay fees for the transactions or for running smart contracts.