The Reserve Bank of India Finally Confirms ‘No Prohibition on Banks in Providing Services to Crypto Companies’
After restricting banks from providing banking services to crypto exchanges and traders for a long time, the Reserve Bank of India (RBI) which is the central bank of India has now finally surrendered and has permitted banks to provide banking services to crypto traders and exchanges. According to the report of a local outlet, the Reserve Bank of India has officially confirmed that banks are no longer prohibited from providing accounts to crypto traders and services to crypto companies and other startups dealing with cryptocurrencies.
The co-founder of local cryptocurrency exchange Unocoin Harish BV initially filed a Right to Information (RTI) request. And now the Reserve Bank of India has given clarification in response to this RTI request.
RBI allows banks to work with Crypto Exchanges
Back in 2018, a notification was issued to banks by the Central bank of India asking them not to work or offer their banking services to crypto companies or crypto-related businesses. Once the ban was imposed all over the country on crypto traders and exchanges, a lot of traders started receiving warning statements from various banks stating that they should halt their activities related to cryptocurrencies and if they did not stop, they would have their accounts suspended.
RBI has now allowed those banks to work with cryptocurrency exchanges that were previously not offering services to them. Banks can now offer accounts to Crypto trader.
No Clarification on the Regulation of Cryptocurrencies
Though, the imposed ban on cryptocurrency-related activities and companies regarding the banking services has been lifted up by the Reserve bank of India however there is still no update on the regulation of cryptocurrencies.
There is no clarification issued by the Supreme Court of India yet regarding the regulation of cryptocurrency and it seems that the Indian government is still pondering over the fact whether to regulate the cryptocurrency or not. There are no rules and regulations set in India for the crypto industry at the moment.
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