Just a day after the Supreme Court in India overturned an anti-crypto stance by the country’s central bank, two top exchanges are now back in business. Unocoin and WazirX have now resumed fiat deposits. The two crypto outfits had been adversely affected by the Reserve Bank of India’s restrictions on bank-crypto dealings. Both Unocoin and WazirX appeared to have given up on the matter and sought to explore overseas markets.
The Supreme Court decision gave the two organisations reprieve as they now look to resume operations in India. Unocoin, which claims to be a pioneer of the industry in India since it started operations in 2013, has been described by analysts as an icon in the industry. The exchange responded to the Supreme Court ruling by going live with Rupee (INR), as well as bank deposits and withdrawals. Rupee (INR) deposits were also seen on Binance-owned WazirX.
Crypto exchanges and organisations in India had been crippled by the RBI’s destructive stance. Amid increasing uncertainty, Unocoin had been forced to lay off 50% of its staff. The platform has remained open since the RBI’s restrictions came into effect back in April 2018. Unocoin has however suspended all fiat deposits in the summer of 2018. The whole crypto industry in India breathed a sigh of relief when a three judge bench constituted of justices; Rohinton Nariman, S Ravindra Bhat, and V Ramasubramanian, ruled the central bank’s restrictions as unconstitutional. The hearing had come after a lot of lobbying by public and industry led groups.
RBI’s earlier ban had forced industry players to improvise new strategies to continue serving clients. Despite the industry now enjoying some reprieve, one potential challenge still looms. The Indian government had opted to delay a draft bill fronted by the central bank that sought to ban crypto in India. The draft bill dubbed the “Banning of Cryptocurrency & Regulation of Official Digital Currencies”, not only seeks to ban crypto but also introduce central bank digital currency, the digital rupee. Restrictions on crypto may have been lifted, but crypto players will be hoping to avoid this new threat.