In a recent turn of events, the Supreme Court of India removed the ban on cryptocurrency trading. Now, every Indian citizen have the ability to trade crypto legally – which will bring a huge profit to the India’s economy in the following years.
Crypto Trading is Now Legal in India
In april 2018, India issued a ban in any dealings involving crypto assets. Now, after almost two years – India removed the ban and issued an official statement regarding crypto trading.
The times were tough in the past, regulated exchanges & service provided needed to exit the Indian market within 3 months from April 2018. Many companies were against the ban, claiming that the central bank didn’t actually studied the matter and banned crypto trading because they had no idea on how to classify it.
But things changed. RBI had a change of heart and declared publicly that a digital rupee was something they were considering. Binance already made a welcome statement for Indian traders, welcoming indian people to the ‘freedom of money’.
— Binance (@binance) March 4, 2020
The price remained the same and there wasn’t a huge impact on the market, yet. But the news itself is a huge boost for Indian economy where a huge part of the population is unbanked. Besides this, are a lot of benefits that will come from these news. Not only for Indian traders, but for the India’s population.
The main benefits and the possible changes in the Indian ecosystem
Probably most of the people didn’t know, but India is the second based on the number of startups created yearly. Their economy is growing and in a few years the technology will probably match a Tier 1 country’s one. And this was without cryptocurrency based startups. What could happen now?
Firstly, there would be a lot of crypto startups. With the recent ban being lifted, more and more entrepreneurs will chose the IEO/ICO way to raise funds for their startups. Of course, some will fail. But the next big thing may come from an Indian fintech company.
Secondly, businesses like Crypto.com may launch on the Indian market. With so many people unbanked, a payment system based on crypto may be a positive change in the Indian community. And of course, this will only lead to a larger crypto adoption rate worldwide. More people will accept crypto instead of USD, a lot of people will keep some of their savings in crypto and some businesses can even accept crypto.
And there’s a whole DeFi market waiting for it now. The Indian Supreme Court’s decision is huge for crypto on the long term. Even CZ from Binance was enthusiast about the news and claimed that he expects to see a large wave of investors coming from India in the future months.
Today, Supreme Court of #India tells Reserve Bank of India's (RBI) to stop banning crypto businesses.
— CZ Binance (@cz_binance) March 4, 2020
Lastly, this will be the example needed. If Indian’s crypto acceptance turns out to be a positive thing for their economy, more and more countries will probably follow their decision. China would be the next big country on the list that needs to regulate and accept cryptocurrency trading. The example set by India may influence the Chinese government to change their decision and made crypto trading legal in China again. Of course, regulated & taxable, but legal.
The cryptocurrency adoption is made with small steps. This is one of those.
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