The Supreme Court of India overturned a central bank ban on digital currency trading on Wednesday in a decision that struck down RBI’s 2018 decision barring the country’s banks from doing business with cryptocurrency exchanges. As CNN reports, the ruling is a victory for the digital currency exchanges that had challenged the central bank’s action, many of whom celebrated the high court’s decision.
In its ruling, the Supreme Court determined that there was no evidence that doing business with digital currency exchanges damaged RBI-regulated banks. As a result, the judges ruled that the central bank’s total ban on trading was a disproportionate act.
Cryptocurrency proponents inside the world’s second most populous nation have long cited the technology’s potential for helping the country’s unbanked gain access to financial services. India has a population of more than 1.3 billion people. That population includes at least 190 million people who lack access to basic financial services.
While some observers have noted that the central bank never explicitly banned digital currency trading inside the country, its bar on bank dealings with exchanges operated as an effective ban for most cryptocurrency traders and exchanges.