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Banks In India Hesitant To Accept Crypto Currency After RBI Approval

Ever since the revoke of blanket ban on cryptocurrencies by the Reserve Bank of India, the industry in India has been handed a major boost, with the new exchanges further leveraging the cause. 

India is among the worst-hit nations due to COVID-19 pandemic and the economy has been severely affected. At this crisis situation in the country, the cryptocurrency and blockchain technology have proved to be respite.

Uncertainty in the Indian market

It, however, looks like revoking the ban was not the solution as many hoped in the earlier stage. But there have been times when banks hesitated or declined to process crypto transactions. These doubts and confusions have given a more regulatory clearance in the industry which was not the case in 2017.

The Ministry of Finance for  intradepartmental consultation was moved by a rumor of a note regarding a draft law that sought to ban all cryptocurrency-related activity, including, a heavy fine or even a jail term of up to 10 years for offenders.

Nischal Shetty, the CEO of crypto exchange WazirX, has maintained his faith in the government, telling Cointelegraph in an email exchange:

“On the day the news about the ‘note’ broke out, it created some panic among the community. But that’s all. We are not seeing any difference in the trading behaviour on WazirX since then. There have been speculations about crypto ban in the past as well. With more than 5 million crypto users in India, I’m confident that our Prime Minister won’t let us down.”

The same positivity is not shared by every expert as Siddharth Sogani, the founder of Crebaco has reportedly feared the inadequate dissemination of knowledge within the governing bodies and iterates the need for a separate committee:

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.