Cryptocurrency Gets Green Light In India

cryptocurrency bitcoin

Recent declaration by RBI cleared all confusions regarding legality of Cryptocurrency, as RBI announced that there is no prohibition on opening of bank accounts by Cryptocurrency traders.

Crux of the Matter

Recent Reversal
In March 2020, Supreme Court of India reversed RBI’s decision of 2018 of banning regulated financial intermediaries from using cryptocurrency. However, confusion lingered among potential investors. On the demand of a Right To Information (RTI) application, RBI announced that cryptocurrency traders can be allowed to open bank accounts.

While the Supreme Court ruling had made it very clear that there are no curbs on banking for crypto businesses, the RBI reply to RTI filing is very much welcome. There has been confusion amongst many banks despite the Supreme Court ruling because these banks have been waiting for information from RBI.

Nischal Shetty, CEO of WazirX

History Of Cryptocurrency In India

  • 2012-2013: Cryptocurrency comes in mainstream observation
  • 2013: RBI cautions of it and labels it “risky”
  • 2016: Exponential increase in its use after Demonetization
  • 2017: RBI repeats concerns of 2013, with the Finance Ministry expressing concern over safety and legality of transactions
  • 2018: RBI prohibits regulated financial institutions’ dealing with cryptocurrency
  • March 2020: SC legalizes Cryptocurrency, overturning RBI’s decision of 2018
  • May 2020: RBI Says “No Prohibition” on Banks allowing accounts to Cryptocurrency traders

Crypto Around The World

  • 2008: An anonymous paper by title “Bitcoin: A Peer-to-Peer Electronic Cash System” appeared
  • 2009: Bitcoin made available to public
  • 2011: Other cryptocurrencies appear – Namecoin, Litecoin, etc
  • 2013: Bitcoin prices crash after reaching 1 Bitcoin = $1,000
  • 2014: Bitcoin exchange Mt.Gox goes offline. Loss of $450 million
  • 2017: Japan passes law legalizing Bitcoin as payment method
  • 2020: India legalizes Cryptocurrency
  • Satoshi Nakamoto is the name used by the presumed pseudonymous person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database.
  • Libra is a permissioned blockchain digital currency proposed by the American social media company Facebook, Inc. The currency and network do not yet exist, and only a rudimentary experimental code has been released. The launch is planned to be later this year.
  • ZebPay is a cryptocurrency exchange and wallet provider headquartered in Singapore with a registered office in Australia. It is currently operational in over 163 countries, including India. In 2020, ZebPay was acquired by Rahul Pagidipati, who is currently serving as CEO, and relaunched in India with a new crypto-crypto trading feature.