Indian banks have eased restrictions on Bitcoin and other cryptocurrencies trading through their channels.
The change comes after the Supreme Court invalidated the RBI’s April 2018 circular. The circular advised banks to warn their customers about cryptocurrency investments.
The latest step will aid in the acceptance of cryptocurrencies in the country, which is already gaining traction.
Investors in cryptocurrencies will be relieved.
The Indian banks have removed restrictions on their channels, which is a huge relief for cryptocurrency investors across the country. This is required by government law in order to obtain Bitcoin and other cryptocurrencies, according to Inc42.
According to reliable reports, the tone of Indian banks has shifted as a result of a previous Reserve Bank of India (RBI) ruling. According to the ruling, banks do not use their April 2018 circular to discourage crypto-currency investment. To reject crypto-monetary services as well.
Given the associated risk, the Central Bank issued a circular in 2018.
Any person or business dealing with virtual currencies must not deal with RBI regulatory authorities, nor should they offer services to facilitate the management or settlement of virtual money.
Maintaining, registering, trading, resolving, clearing, providing virtual token loans, taking them as guarantees, creating exchange accounts, and transferring/receiving money in VC purchase/selling accounts were just a few of the services available.
It had stated that “Regulated entities that already provide such services shall terminate the relationship within three months of the date of this circular.”
However, in March 2020, the Supreme Court allowed banks to continue facilitating crypto-currency transactions for traders and exchanges. As a result, crippled investors will experience a breakdown.
The New Bitcoin Bill
The latest bank action comes as the Indian government drafts a new cryptocurrency bill.
The RBI’s clarification came in response to media reports that several banks and regulated companies had issued warnings to their customers about virtual currency (VC) trading. As a result, by referring to an RBI circular dated April 6, 2018.
The following is a copy of the RBI’s notification.
“As such, given the Supreme Court’s order. From the date of the Supreme Court’s decision, the circular is no longer valid. As a result, it cannot be cited or quoted.”
Adoption of BTC in India
India is increasingly adopting Bitcoin and other cryptocurrencies. According to reports, the country now has over one crypto-investor, with the number of domestic exchanges active in the country increasing every day.
Bitcoin is hovering around the $47,000 mark once more (for one single coin, more than INR 34L). The most popular cryptocurrency is traded in the Green, with a market value of around $900 billion.
RBI will also begin its first digital currency testing program before the end of the year, according to its governor, Shaktikanta Das.
However, India still owns less than 1% of the global BTC market.