In April 2018 the Reserve Bank of India (RBI), which is the Central Bank of India, effectively banned crypto exchanges and severely restricted crypto businesses by barring banks from serving any crypto related business. However, the Supreme Court of India just overruled the RBI crypto bank ban, which will allow the crypto sector in India to return to normalcy.
Notably, crypto activity in India did not die out due to the ban, rather peer to peer crypto activity flourished instead. Many platforms arose where Indians could buy and sell crypto peer to peer.
The only detrimental impact from the ban was that centralized crypto exchanges could not stay in business, so instead decentralized crypto exchanges took over.
Now the Supreme Court has ruled that the RBI’s crypto ban is unconstitutional, and crypto exchanges and businesses will be able to access banks again. Indeed, the Indian crypto exchange ZebPay has already reopened.
Perhaps India will now have a stronger peer to peer crypto economy than most other countries, while simultaneously having centralized exchanges as well. Compare this to the United States, where the peer to peer crypto economy is totally dead due to regulations, and only centralized exchanges like Coinbase can make money on the crypto exchange business.
In other words, in India there are numerous individuals and businesses who can be successful and make profits from the crypto trade, unlike in the United States where only a handful of big corporations can make money on the crypto exchange business.
Therefore, ultimately the RBI’s crypto banking ban may have proven beneficial to the crypto space in India, by fostering the growth of a strong and decentralized peer to peer crypto network.