Cryptocurrency Bank Cashaa will be offering its services to Indian investors and exchanges from August 2021, according to an announcement. Initially, the bank would be launching its operations in three Indian states, including New Delhi, Gujarat and Rajasthan.
During the second phase of its scheme, the services would be expanded to other Indian territories like Maharashtra, Uttar Pradesh and West Bengal.
The crypto exchanges in India, who are are not able to provide seamless services to their customers due to banks’ non-cooperation, are expecting Cashaa to be their savior.
In order to offer investors peer-to-peer trading to the investors, the crypto bank is planning to introduce a personal bank account on its platform. Along with that, it will be offering debit cards and loans services against cryptocurrencies. The customers are also allowed to lend from the bank for buying cryptocurrencies.
“We will be coming to India next month. We will be launching personal bank accounts so that personal traders can do Peer Peer trading. Cryptocurrency traders will be able to transact without fear of their bank accounts being frozen,” said Kumar Gaurav, CEO, and Founder, Cashaa.
The CEO of the crypto bank is already in discussion with the Indian crypto exchanges. He said that the bank plans to acquire five million customers on its platform.
Cashaa along with The United Multistate Credit Co.Operative Society has been investing on its bets platform over 200 crypto businesses. Till date, there are three active physical branches of the bank, in the future, it plans to open more.
Cashaa is also working on a franchise model to expand to 100 branches.
Recently, Gaurav stated that like any other bank in the country Cashaa will also complete the KYC norms.
Crypto Investors Facing Trouble
For the past few months, many banks have cut off their ties with the crypto-related activities in the country, which has caused so much trouble for the investors, as they were not able to facilitate transactions.
In April 2018, the Reserve Bank of India (RBI) released a circular on ‘Prohibition on dealing in Virtual Currencies’ but in March 2020, the Supreme Court of India invalidated that circular.
Recently, while citing the RBI’s circular that banks stopped providing their services to crypto-related activities. However, a few days later, the RBI clarified its stance on the circular and asked the regulated entities to not use it, still, this did not help in easing banks’ concern.
“We are still in discussion with banks but there is no breakthrough yet in terms of any large banks servicing the industry,” said Nischal Shetty, the CEO of WazirX.
The Indian banks are cautious regarding the transactions related to crypto, as there are no clear regulations for them to follow.
The crypto exchanges in India are searching for solutions or payment gateways to help their customers, so that, they could process the transaction.
The crypto investors are hoping that major banks offer their services to the exchanges to process large-scale transactions.
One of the crypto traders, recently, said, “Most payment gateways also use large private banks. So unless one of them is willing to work with cryptocurrency transactions, it is difficult to ensure seamless banking services.”