Indian Banks Now Allowed To Work With Crypto-Related Businesses
In April 2018, the Reserve Bank of India (RBI) in April 2018 placed a permanent ban tailored to domestic financial institutions from providing banking services to crypto exchanges in the country, a move that forced some exchanges to shut down as trade plunged while the case was ongoing. However, In March this year, the ban was quashed by the supreme court and subsequently opened up crypto trading operations in the country.
In a report confirmed by the Economic Times, top financial institutions in the country such as State Bank of India, ICICI Bank, HDFC Bank and Yes Bank are now giving opportunities for customers to use their bank accounts to fund cryptocurrency trading. They are further offering various facilities to cryptocurrency exchanges all around the country.
The ban affected crypto trading in India
It came as a shock in April 2018 when the Central Bank decided that the banks and financial institutions it oversees will no longer be allowed to work with cryptocurrency exchanges and other related services. It further gave regulated entities which already provide such services to stop in 3months.
Analyst fears that the news renewed concerns of the country’s mission to impose an outright ban on cryptocurrencies. However, in a twist of fate, the Supreme Court of India ruled against the ban imposed by the country’s central bank nearly two years after. The ban was one of the reasons why trading crypto in Asia’s third-largest economy was stifled.
The Founder and Chief Executive of CoinDCX, Sumit Gupta believe that the uplifted ban will open new opportunities for the country in terms of investments, economy and market as a whole. Gupta also conceded that he had always seen crypto as a potential to unlock the country’s dream of becoming a $5 trillion economy.
Even Tavi Ratna, Founder of Policy 4.0, a firm that regulates crypto policymaking in India believed that the uplifted ban signifies a resurgence of liquidity and resumption of activity with exchanges and other startups for the economy of the nation.
Indian crypto community delighted with the ban upliftment
Reports gathered after the ban upliftment was that, the banks were not quick to start transacting despite a court ruling in favour of the crypto market. Gaurav Dahake, CEO of Bangalore-based exchange, Bitbns, believed that the price momentum around Bitcoin forced the customers of the bank to demand them to open up an account specific to crypto trading which the bank has now obliged to. A lot of banks in the country have still not opened up despite the freedom to trade with the cryptocurrency market.
Nischal Shetty, CEO of Binance-backed cryptocurrency exchange WazirX, told reporters that banks have reached out to his company to offer working capital or other loans and financial services. Alternatively, Sumit Gupta who was excited about the ban upliftment, also confirmed to the press that his company had been partnering with multiple banking firms to build and develop business services ever since the Supreme Court order was overturned. The future of the country’s cryptocurrency stance remains unknown, but the good thing is that traders and investors can now enjoy banking transactions.