India’s central bank says no curbs in providing bank accounts to crypto traders

India’s central bank, the Reserve Bank of India clarified that there are no restrictions on banks preventing them from providing an account to cryptocurrency companies or traders.

The request was initially filed by Harish BV, a co-founder of local cryptocurrency exchange Unocoin last week.

In March, the Supreme Court of India had struck down restrictions imposed by the RBI in a circular in April 2018 which directed all entities regulated by it not to deal in virtual currencies or provide services to facilitate any person or entity from dealing or settling in the same. The apex court termed it illegal. Harish filed the RTI query following concerns by traders who said banks continued to impose restrictions on crypto trade despite the top court ruling.

“Bankers have been saying that they need new RBI circulars mentioning that there are no more restrictions for them to provide bank accounts for crypto businesses. Now, we have received a positive response from the Reserve Bank of India,” Harish said.

After RBI imposed the banking ban on cryptocurrencies, most Indian blockchain and cryptocurrency startups registered themselves in countries with crypto-friendly regulations while still operating from India. Some of the most established Indian crypto businesses were either forced to close shop or move to a different country.

As AZCoin News reported today, CoinDCX, India’s largest cryptocurrency exchange had raised $2.5 million from investors including Polychain Capital and Coinbase Ventures, the investment arm of crypto exchange Coinbase.

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