A recent announcement issued by the Reserve Bank of India (RBI) suggests that Indian banks are not prohibited from opening accounts for crypto companies anymore.
The Reserve Bank of India Confirm No Restrictions for crypto related firm
Indeed, in its letter, the RBI explained that there are no restrictions on banks that want to open accounts with companies that deal with cryptocurrencies.
The RBI's letter was written at the request of Harish BV, co-founder of the local crypto exchange, Unocoin.
End of controversy?
It's a big breakthrough. In 2018. the RBI issued a statement that limited the development of the cryptocurrency market in India. Commercial banks were somehow banned from opening accounts for companies that offered trading in digital currencies.
Since then, the situation improved as the RBI ban was lifted by the Supreme Court in early March. This was an apparent success, as allegedly the banks were still afraid to open accounts with the crypto exchanges. They claimed that they had not received any letter from the RBI in this case.
Lawyer Mohammed Danish noted that the Supreme Court's decision to lift the ban did not contain an order for the RBI to notify the banks of the ruling.
The current announcement published by the central bank theoretically makes the situation clear.
Damage to economy
The actions of the RBI were detrimental to the Indian economy. It is worth noting that companies from the BTC market in India have reregistered in recent months to countries with crypto-friendly regulations.However, they were still actually operating in India, although taxes were paid in other jurisdictions. Some of India's best known companies were forced to close down.
Harish BV told Cointelegraph that now that the RBI's position is crystal clear, the blockchain and cryptocurrencies industry can grow again in India. And we're talking about a market of 1.35 billion people.
“After Supreme Court scrapping RBI's Ban on crypto and RTI’s reply from RBI, it is clear that there is no need for any blockchain or crypto company to register out of India.”
- he says.