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RBI Says No Restrictions on Banks Providing Accounts to Crypto Traders

India’s central financial institution, the Reserve Financial institution of India, appears to lastly be clarifying its stance on monetary providers for cryptocurrency-related companies. 

In response to a proper to info request, the RBI clarified that there aren’t any restrictions on banks stopping them from offering an account to cryptocurrency corporations or merchants.

The request was initially filed by Harish BV, a cofounder of native cryptocurrency change Unocoin.

The Supreme Court docket’s resolution on the crypto ban wasn’t the top

In 2018, the RBI launched a press release limiting all regulated entities together with banks from coping with any group or particular person merchants transacting in cryptocurrencies. After the ban, many corporations and merchants additionally obtained warning statements from their respective banks advising them to both cease their cryptocurrency actions or have their accounts suspended.

Issues have since improved as in early March, the Supreme Court docket lifted RBI’s ban on monetary entities from coping with crypto-related prospects. 

Nevertheless, uncertainties nonetheless abounded relating to whether or not banks may assist accounts for such prospects. Earlier this spring, some banks had been reportedly nonetheless refusing providers to crypto companies.

Native fintech lawyer Mohammed Danish beforehand said that the Supreme Court docket’s ruling on the ban didn’t embody an order for the RBI to inform banks and request their compliance with the court docket order.

To make clear merchants’ issues as to why banking portals nonetheless prohibited transactions in digital currencies, Harish BV filed an info request on April 25, asking the monetary regulator if it nonetheless prohibited any banks from offering financial institution accounts to cryptocurrency corporations or merchants,

In response, the RBI wrote, “as on date, no such prohibition exists.”

Crypto is now open to 1.35 billion individuals

After RBI imposed the banking ban on cryptocurrencies, most Indian blockchain and cryptocurrency startups registered themselves in nations with crypto-friendly rules whereas nonetheless working from India. A few of the most established Indian crypto companies had been both pressured to shut store or transfer to a special nation.

Harish BV informed Cointelegraph that now that the RBI’s stance is crystal clear, the blockchain and cryptocurrency trade can flourish in India, opening digital belongings to 1.35 billion Indians:

“After Supreme Court docket scrapping RBI’s Ban on crypto and RTI’s reply from RBI, it’s clear that there isn’t any want for any blockchain or crypto firm to register out of India.”

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