The subsistence of cryptocurrency in India has met several resistances mainly from giant banking entities like RBI and HDFC. May 31 marked the turn of tables for cryptocurrency in India when the Reserve Bank of India (RBI) and other regulated entities failed to cite the circular from 2018 as it has been set aside by the Supreme Court of India. This circular stands invalid from the date of the SC order and cannot be quoted any further.
The new clarification found space after the recent investor communication by the diverse banking entities such as HDFC and SBI which alerted the nation about the multiple cons crypto exchanges may entail, citing the 2018 regulation. The banks had asked the investors to clarify the nature of the crypto transactions and be certain about the risks and possible dangers associated with the crypto transactions. The banks have also warned the investors about the permanent closure of their bank accounts if the clarifications are failed to be done within a stipulated time.
Nishchal Shetty, CEO of WazirX, India's most reputed crypto exchange platform, welcomes the move by labeling it as a positive ray of hope for the Indian crypto ecosystem. He also asserts that such a move will also prompt the banking entities to upgrade their compliance terms and provide easy banking access to Indian crypto exchanges.
Under a negative light, several banks and virtual finance platforms are eventually severing ties with crypto exchange platforms like WazirX and Coin DCX. In a recent move, Paytm is seen to dissociate itself from WazirX. This left crypto investors unable to deposit or withdraw money from their accounts.
However, Yumna Ahmed, a regular crypto investor praises such a move by the banks as it brings clarity regarding the banks' interests in crypto engagements. Rameesh Kailasam of India Tech echoed similar views.
Despite an arbitrary array of laws and regulations on crypto, investments have already crossed one billion dollars, which makes India one of the top countries in terms of virtual currency trading.
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