Saturday, February 4, 2023

Indian Banks Changes Their Stance On Cryptocurrency

Indian crypto investors take a sigh of relief after the private and public banks in the country soften their stance over the crypto industry.

The reason behind this sudden change in the Indian banks’ behavior is considered to be the Reserve Bank of India’s (RBI) latest decision, in which it told the financial institutions to not use the central bank’s April 2018 circular for not offering its services to crypto-related companies.

In 2018, the notification released by the central bank of India ordered all the RBI-regulated entities to not deal in cryptocurrencies. It also stated that the financial institutions should also not offer their services to those who are dealing in digital assets in the country. 

The circular issued by RBI read: “Regulated entities which already provide such services shall exit the relationship within three months from the date of this circular.”

However, in March 2020, the Supreme Court of India revoked the ban and allowed the banks to continue offering their services. 

According to the reports, the Indian Government is also planning to implement a new crypto law in the country. Currently, India is working on it.

A few of the media reports, recently, suggested that the RBI and certain regulated entities of the central bank cautioned their customers against dealing in cryptocurrency, while making reference to RBI’s 2018 circular.

However, later the RBI clarified its stance and stated, “As such, in view of the order of the Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.”

Crypto adoption in India is increasing day by day. The reports further suggested that there are over one million crypto investors in the country and the number is increasing, significantly, every day. 

However, Indians own less than 1 percent of the world’s Bitcoin till date.

Bitcoin, which currently is being traded at around $47,000, started declining in April after reaching an all-time high position. The cryptocurrency is now moving in a green position with a market cap of $900 billion.

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