RBI: Banks Have no Restrictions on Working with Crypto
The Reserve Bank of India (RBI) said that banks have no right to refuse services to cryptocurrency companies. Thus, the Central Bank recognized that it would not insist on revising the verdict of the country’s Supreme Court, which lifted the ban on the regulator.
Recall that back in 2018, RBI notified banks that they cannot serve cryptocurrency companies or traders who deal with cryptocurrencies. But in March 2020, such a decision was canceled by the Supreme Court of India.
However, even after the decision of the Supreme Court, there were many cases of denial of service, which motivate the head of Unocoin to submit a request through the RTI (Right To Information) portal.
The Central Bank of India seems to have clarified its position on cryptocurrency companies. The request through RTI was submitted by the co-founder of the local crypto exchange Unocoin.
An RTI was filed by @bvharish Co-founder of Unocoin.
Question: Does RBI prohibited any banks from providing the bank accounts to crypto exchanges or crypto traders ?
Answer from RBI: As on date no such prohibition exist.
Great, now you can show this RTI to your bank. 🚀🚀 pic.twitter.com/n5iqGCSQtd
— Crypto Kanoon (@cryptokanoon) May 24, 2020
In response to a request through the RTI portal, the Reserve Bank of India (RBI) confirmed that there is currently no ban on cryptocurrency companies and the trading of digital assets in the country. Banks are also allowed to provide services to cryptocurrency firms.
However, cryptocurrencies in India are still in an unregulated zone. Legislators should adopt a law establishing rules and regulations for the crypto industry. Also, previously there were many proposals for a complete ban on cryptocurrencies in the country.
The Situation on the Cryptocurrency Exchanges of India
In one of the country’s largest bitcoin exchanges, CoinDCX noted that after a verdict of the Supreme Court, a real boom occurred in the cryptocurrency industry of India. According to the results of the first quarter, the Bitcoin Exchange recorded a 47% increase in trading volume. A ten-fold increase in registered users and a 150% increase in daily active users.
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