India’s crypto trade is bouncing back after the Supreme Court of India lifted banking restrictions for exchanges in March. The crypto market there had slowed dramatically in the wake of the Reserve Bank of India’s (RBI) 2018 decree that financial institutions cannot work with crypto exchanges. The nation wasn’t the first to backtrack on a ban.
In 2017, China announced the forced closure of all Bitcoin exchanges operating in the country. A later report by the Beijing Arbitration Commission (BAC) stated that, “the state does not prohibit Bitcoin’s activities as virtual commodities, except for the activities that Bitcoin is engaged in as legal tender.”
Danny Scott, CEO at CoinCorner, isn’t surprised as India follows suit. “Although any ban on cryptocurrency trading has an effect on the industry – especially one that impacts big markets like India and China – the crypto market is maturing and we are seeing that these bans are having less of an impact globally on the industry,” he said.
He says the announcement will be a blow to India, including the exchanges with their primary focus in this territory. India has faced challenges in regards to cryptocurrency restrictions before.
“In April 2018, the Reserve Bank of India (RBI) banned domestic financial institutions from providing banking services to crypto exchanges,” recalls Scott. “The ban was overruled in March this year and the Indian crypto sector recovered quickly, with crypto trade volumes reportedly soaring in the following months.”