Major Indian crypto companies Unocoin and WazirX have resumed operations less than a day after the country’s Supreme Court has canceled the restrictions imposed on local banks’ dealings with crypto firms.
Unocoin, which claims to have been the first crypto company in India, has been described by local observers as “an icon of the crypto industry.”
Today, the platform resumed operations with rupee as well as bank account deposits and withdrawals, followed by rupee deposits on WazirX that is owned by Binance.
Adam Back, CEO of Blockstream— the developer of the hashcash proof-of-work – welcomed the news that Unocoin resumed full operations, tweeting: “Game on # Bitcoin.”
Crypto industry revives
Last year, amid the growing regulatory uncertainty about the crypto industry in the the country, Unocoin had to lay off 50% of its employees. However, the platform has remained open since the RBI’s ban came into force, but all fiat deposits were suspended in the summer of 2018.
Kashif Raza, co-founder of Indian Crypto Kanoon, said the Supreme Court’s decision is “historic”, believing that it will achieve “positivity to the entire ecosystem.”
However, Reza’s optimism seems to have faded quickly, with fellow crypto exchange CoinDCX resuming its fiat services less than six hours after the Supreme Court’s ruling was announced.
In a related context, Ashish Singhal, founder of Indian blockchain payments startup CRUXPay, said the ruling would pave the way for “favorable regulations protecting all stakeholders”.
India’s Supreme Court has overturned the ban imposed by the country’s central bank on the dealings of local banks with crypto firms.
In April 2018, the Reserve Bank of India (RBI) had imposed a ban on local banks, preventing them from dealing with crypto firms. The ban came into effect in July of the same year.
Accordingly, the Internet & Mobile Association of India (IAMAI) filed a lawsuit against the RBI to the Supreme Court.
The court held the hearings for two weeks in January 2020.
IAMAI mainly represents customers, investors and Internet firms before policymakers.
The judges ruled that the RBI’s ban decision was “disproportionate”. The central bank argued that cryptocurrency is a digital medium of payment and that the institution was “legally allowed” in its interference.