Cryptocurrency exchanges scored a victory in India after the nation’s Supreme Court endorsed their stand against curbs put in place by the central bank that effectively outlawed virtual currencies in Asia’s third-largest economy.
A three-judge bench headed by Justice Rohinton F. Nariman agreed with petitions by cryptocurrency exchanges, start ups and industry bodies that had challenged the Reserve Bank of India’s April 2018 decision to ban banks from offering any services to support digital currencies. The court struck down the RBI’s curbs on Wednesday.
The ruling is an opportunity for virtual currency investors and businesses in India to push against stricter rules being planned by a skeptical government, and potentially raises hope for projects such as Facebook Inc.’s Libra cryptocurrency. The Supreme Court is separately hearing another case, in which it will decide on regulations for digital currencies, and Wednesday’s judgment weakens the case for strict norms.