Indian banks are apparently slowly beginning to accept and open up to the cryptocurrency market. It is probably a long way to breakthrough …
Indian banks and cryptocurrency exchanges
Indian banks are apparently slowly opening up to the cryptocurrency market. Perhaps this is because India has been affected by the COVID-19 pandemic, which has deepened the economic crisis. For investors, cryptocurrencies have turned out to be something to escape in times of high inflation.
Another factor is that the Supreme Court found that prohibiting banks from cooperating with entities from the blockchain market is not legal. In the background, however, the rumor returned about alleged plans to ban the use and possession of cryptocurrencies. Earlier, this type of law introduced a 10-year prison for people who would buy Bitcoins. It is possible, however, that such strict regulations will not come into force at all.
Besides, Siddharth Sogani, the founder of Crebaco – a blockchain research company – notes that politicians and officials in India are prejudiced against cryptocurrencies, because they know little about them:
“Our government has published a bill on cryptocurrencies, which was drawn up by people from the National Institute of Financial Policy and Planning, but [powstał] without consulting any industry or subject matter expert. “
Do not get your hands dirty
Sogani also adds in conversation with Cointelegraphthat “Banks will always be against this industry around the world because if cryptocurrencies start working, P2P transactions will eliminate the need [usług] external bankers. “
As he adds:
“Banks in India are not sure how to treat transactions on the Bitcoin network. They obviously don’t want to get their hands dirty when they are not in force [jasne] cryptocurrency regulations. In addition, the Reserve Bank of India has not canceled or issued a new circular that would require banks to resume cooperation with cryptocurrency companies. “
Despite the above, in response to the request for information, made by the founder of the local cryptocurrency exchange Unocoin, the Reserve Bank of India clearly stated that there are no restrictions on banks opening accounts for companies from the cryptocurrency industry and individual traders. All this is important because India is one of the largest markets in the world …