Indian Banks Are Now Serving Crypto Exchanges And Traders
The news that banks in India will be serving crypto traders, exchanges and their customers have been met with huge plaudits. Banks in the country have been given the green light to business with a select crypto exchanges.
Banking institutions like ICICI Bank, State Bank of India, Yes Bank, and HDFC Bank are allowing customers to use their bank accounts to carry out cryptocurrency transactions. In addition, they are providing numerous facilities to crypto exchanges.
In April 2018, accounts of major exchanges were suspended after the Reserve Bank of India mandated all banks from using their systems for cryptocurrency-related transactions and services. The ban was revoked by the Supreme Court at the start of the year.
“Banks earlier took a cautious approach even after the supreme court overruled the central bank’s crypto ban in March.” Gaurav Dahake, founder and CEO of one the select crypto exchanges allowed to function in India “But with time and price momentum around bitcoin, a lot more clients started demanding them to open up an account specific to crypto trading and banks have started opening them up now.”
Bitcoin recently smashed the $23,000 mark to set a new all time high. In fact it broke its all time high consecutively within 24 hours.
Sumit Gupta, CEO of Mumbai-based cryptocurrency exchange CoinDCX, mentioned that his crypto platform is working with several banks to create business services since the Supreme Court revoked the ban.
In addition, other exchanges have said that banks are reaching out to them to provide working capital, loans and other financial services to enable them start working again.
The Need For Caution
However, a banker mentioned that his bank is still cautious about working with crypto platforms, and they are only working with a few exchanges that they’ve vetted. Other banks are still following a cautious approach at this moment.
While banks have the green light to serve crypto platforms, exchanges and traders, the Indian government’s stance on crypto is still unclear. As of last month, the government said it is still brooding over a ban on crypto trading but it is exploring the possibility of using blockchain’s utility in managing records in real estate, pharma supply chain, and educational services.