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The 2 year long skeptical wait of crypto traders, crypto exchanges and technology enthusiasts culminated into a happy ending on March 04, 2020 with the Indian Honourable Supreme Court deciding in the favour of the petitioners (Internet and Mobile Association of India) {on behalf of the Crypto Community} against the Reserve Bank of India {administrative body of the Government}.

While a deeper analysis of the Judgement and what it means for India and the Crypto Fraternity shall follow. Here is our first reaction to the judgement :

A. What exactly did Supreme Court conclude ? :

Original link of complete Judgement from Supreme Court Website :

B. What it means for the crypto community ?

  1. Prima Facie it means, that the position prior to the imposing of ring fencing and banking restriction by the Reserve Bank of India shall be put back.
  2. Crypto Exchanges shall re gain access to banking in India.
  3. Reserve Bank’s Circular dated 06 04 2018 is set aside on the grounds of “proportionality”.

In the test of Proportionality the “courts will quash exercise of discretionary powers in which there is no reasonable relation between the objective which is sought to be achieved and the means used to that end, {with reference to this case, it means that the actions by RBI of imposing restrictions by not giving banking access to crypto exchanges wasn’t related to its objective of trying to protect innocent crypto traders from risks of crypto trading} or where punishments imposed by administrative bodies or inferior courts are wholly out of proportion to the relevant misconduct”.

So the administrative action which arbitrarily discriminates will be quashed by the court. {which is exactly what the Court did}. The implication of the principle of proportionality is that the court will weigh for itself the advantages and disadvantages of an administrative action and such an action will be upheld as valid if and only if the balance is advantages. If this action is disproportionate to the mischief then it will be quashed

C. What it REALLY means for the crypto community ?