RBI Circular on Cryptocurrency Clarifies No Ban in India: Will UPI, Online Payments Return?
“Our finance minister herself has called for a “calibrated approach” to cryptocurrencies in India, and given that we have over 1.5 crore crypto users in the country contributing over $2 billion to our economy, it is unlikely that cryptocurrencies will be banned in India,” Shetty told News18.01-Jun-2021
RBI Circular on Cryptocurrency Clarifies No Ban in India: Will UPI, Online Payments Return?
File photo of a Bitcoin illustration. The RBI on Monday clarified that banks must stop using its 2018 directive to prevent crypto investments in India. (Image: AFP)File photo of a Bitcoin illustration. The RBI on Monday clarified that banks must stop using its 2018 directive to prevent crypto investments in India. (Image: AFP)
The top Indian regulatory bank issued a statement that its 2018 circular advising against cryptocurrencies is no longer valid, but the road back to banks supporting crypto investments in India may not be as clear.
NEWS18.COM
LAST UPDATED:
JUNE 01, 2021, 23:10 IST
FOLLOW US ON:
FacebookTwitterInstagramTelegramGoogle News
SHOUVIK DAS
HIGHLIGHTS
RBI's circular simply clarifies that banks cannot cite the 2018 order to discourage crypto investments
However, the RBI has left it upon banks to apply their 'due diligence' before supporting cryptocurrencies
Crypto startups in India welcomed the move, but have been calling for regulations to prevent such issues
Yesterday, on May 31, the Reserve Bank of India issued a circular that offered some clarification towards the official state of cryptocurrencies in India. After widespread reports claimed that both private and public sector banks have been actively advising users against investing in cryptocurrencies, while withdrawing payment support for Indian crypto trading platforms, the RBI circular underlined that banks can no longer prevent users from making crypto investments by citing the 2018 circular. However, the circular may not be viewed as a direct endorsement of cryptocurrencies by the central bank, therefore still leaving the Indian crypto space wide open for an official regulatory framework, which cannot arrive soon enough.
WHAT THE RBI CIRCULAR REALLY SAYS
In the circular, RBI’s chief general manager, Shrimohan Yadav states, “References to the (old) circular by banks/ regulated entities are not in order, as it was set aside by the Hon’ble Supreme Court on March 4, 2020. As such, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.” However, it is important to note that while the clarification is certainly of value, the RBI has left room open for banks to take their own call by not mandating that not complying with cryptocurrency trading platforms and wallets in India would go against the law.
In the RBI circular, Yadav has further added, “Banks (and NBFCs) may continue to carry out due customer diligence processes, in line with regulations governing standards for Know Your Customer, Anti-Money Laundering, Combating of Financing of Terrorism and obligations of regulated entities under Prevention of Money Laundering Act, 2002 – in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act for overseas remittances.”
RELATED NEWS
Elon Musk Tweets Tesla Will Accept Bitcoin When Miners 'Use Clean Energy,' Cryptocurrency Prices Jump
Bitcoin Crosses $10,000 Threshold For First Time Since February Before Halving Again
Industry stakeholders believe regulations will help end arbitrary bans and withdrawals of support from banks – stalling the Indian crypto market.
WHAT THIS MIGHT MEAN FOR CRYPTO IN INDIA
The circular comes at a time when cryptocurrencies have seen a clear spurt in usage. Platforms such as WazirX, which are among the most recognised names in the crypto space in India, have seen far greater growth than ever before – hence signalling the need for a robust set of regulatory laws in this sector. In a recent interview with News18, WazirX CEO Nischal Shetty highlighted this very aspect, stating that the biggest gain for cryptocurrencies after being subjected to regulation would be the end of arbitrary bans and withdrawals of support from banks – which would enable common people to invest in crypto.
“Our finance minister herself has called for a “calibrated approach” to cryptocurrencies in India, and given that we have over 1.5 crore crypto users in the country contributing over $2 billion to our economy, it is unlikely that cryptocurrencies will be banned in India,” Shetty told News18. However, while the RBI circular may add one clause to the battle for cryptocurrencies in India on its face value, the recent market trajectory has gone exactly the opposite way. Various reports have claimed that at least HDFC Bank, India’s largest private sector bank, as well as the State Bank of India, the biggest public sector bank in the country, have both been warning users against investing in cryptocurrencies.
ICICI Bank was one of the last major private sector banks to discontinue offering banking and payment services for cryptocurrency platform, and is also said to have cited the 2018 RBI circular as the basis for doing so. When contacted by News18, an ICICI Bank official neither confirmed and nor denied its reported stance on cryptocurrencies. News18’s requests for a comment on the new RBI circular remained unanswered by ICICI Bank at the time of publishing.
We respect the concern that the banks may have around AML policies, and discussions around the same will make investments safer.-Sumit Gupta, CoinDCX
CRYPTO MARKET IS NATURALLY BULLISH
As expected, the Indian crypto market remained upbeat after the publication of the RBI circular yesterday. WazirX’s Shetty tweeted that the directive would bring “joy and confidence” to the sector. Sumit Gupta, co-founder and CEO of Indian cryptocurrency index CoinDCX, echoed Shetty’s words by “welcoming” RBI’s move, and stated that the circular may help end confusions around crypto investments in India to a large extent. Interestingly, while the RBI circular issued a cautionary note and stated that banks may act upon their discretion in line with Anti-Money Laundering (AML) policies, Gupta believes that this may have a positive effect on the crypto industry.
“We respect the concern that the banks may have around AML policies, and discussions around the same will make investments safer,” Gupta added. The circular, as a result, does not really mandate the return of online banking or UPI payments support from major banks and non-banking financial companies (NBFCs) in India, and the route back to normalcy, i.e the open-market, free trading of cryptocurrencies in the country, remain just slightly less murkier than what it was prior to the clarification.
Jul 2 2021 @ 15:46PMహోంబిజినెస్‘క్రిప్టో’పై ఆర్బీఐ ఆందోళనల ప్రభావం...అన్నపూర్ణ మ్యారేజెస్ - అన్ని కులాల వారికి పెళ్లి సంబంధాలు చూడబడునుప్రవేశం ఉచితంPH: 9397979740/50
ముంబై : అవాంతరాలు లేని పరిష్కారం కోసం భారతీయ క్రిప్టోకరెన్సీ ఎక్స్చేంజీలు ప్రయత్నాలు చేస్తున్నాయి. క్రిప్టో కరెన్సీపై రిజర్వ్ బ్యాంక్ ఆఫ్ ఇండియా (ఆర్బీఐ) పలుమార్లు వ్యక్తం చేసిన ఆందోళనల ప్రభావం... క్రిప్టో మార్కెట్ పై ప్రతిఫలిస్తోంది. కరోనా తర్వాత దాదాపు ఏడాది పాటు క్రిప్టో మార్కెట్ పరుగులు పెట్టిన విషయం తెలిసిందే. బారతీయులు కూడా పెద్దఎత్తున క్రిప్టో కరెన్సీలో పెట్టుబడులు పెట్టారు.
క్రిప్టో ట్రాన్సాక్షన్స్, బదలీలు, చెల్లింపులకు సంబంధించి పలు ఫిర్యాదులు తలెత్తుతున్నాయి. మొత్తంమీద క్రిప్టో కరెన్సీ లావాదేవీలకు ఆర్బీఐ ప్రస్తుతం సుముఖంగా లేదు. ఇటీవలి కాలంలో క్రిప్టో విలువ పడిపోవడంతో వాటి స్థిరత్వంపై కేంద్రీకరించాలని బ్యాంకర్లను ఆర్బీఐ కోరింది. వివిధ పేమెంట్ గేట్వే సంస్థలతో టై-అప్ అయిన బ్యాంకులు క్రిప్టో లావాదేవీలను నిరాకరిస్తున్నాయి. దీంతో క్రిప్టో కస్టమర్ల నుండి ఫిర్యాదులు వెల్లువెత్తుతున్నాయి. 'క్రిప్టోతో లావాదేవీలు, వ్యాపారానికి బ్యాంకులు ఆసక్తిగా లేవు' అని జెబ్పే కో-చీఫ్ ఎగ్జిక్యూటివ్ అవినాశ్ శేఖర్ పేర్కొన్నారు. సమస్య పరిష్కారానికి తాము వివిధ పేమెంట్ భాగస్వాములతో చర్చలు జరుపుతున్నామని వెల్లడించారు.
Jul 2 2021 @ 16:10PMహోంబిజినెస్బంగారం నుంచి ‘క్రిప్టో’ దిశగా... యువత మొగ్గు...అన్నపూర్ణ మ్యారేజెస్ - అన్ని కులాల వారికి పెళ్లి సంబంధాలు చూడబడునుప్రవేశం ఉచితంPH: 9397979740/50
ముంబై : కరోనా నేపధ్యంలో... ఏడాది కాలంగా క్రిప్టోకరెన్సీకి డిమాండ్ పెరిగుతూ వస్తోన్న విషయం తెలిసిందే. ఏడాదిలోనే క్రిప్టో కింగ్ బిట్ కాయిన్ 700 రెట్లకు పైగా పెరిగి 65 వేల డాలర్లకు చేరుకుంది. కాగా... టెస్లా అధినేత ఎలాన్ మస్క్ వ్యాఖ్యలు, టర్కీ, చైనాల నిర్ణయం నేపద్యంలో... బిట్ కాయిన్ సహా క్రిప్టో కరెన్సీ విలువ పడిపోయింది. గత కొద్ది రోజులుగా క్రిప్టో కరెన్సీ అతి స్వల్ప పెరుగుదల, తగ్గుదలలతో కదలాడుతోంది. సాధారణంగా మార్కెట్ నిపుణులు స్టాక్స్ పడిపోయిన సందర్భాల్లో కొనుగోలు చేయాలని సూచిస్తుంటారన్న విషయం తెలిసిందే. భారతీయులు క్రిప్టోకు ఇదే వర్తింపజేస్తున్నారు.
బంగారం నుండి బిట్ కాయిన్...
భారతీయులు 25 వేల టన్నుల బంగారంపై పెట్టుబడులు పెట్టారని, అదే సమయంలో గతేడాది కాలంలో క్రిప్టో కరెన్సీపై పెట్టుబడులు రెట్టింపు స్థాయిలో పెరిగాయని నివేదికలు వెల్లడిస్తున్నాయి. గత సంవత్సరం కాలంలో చాలామంది ఇన్వెస్టర్లు బంగారం నుండి బిట్ కాయిన్ వైపు మొగ్గు చూపుతున్నట్లుగా తెలుస్తోంది. డిసెంబరు నుండి 32 ఏళ్ల రిచి సూద్ అనే ఇన్వెస్టర్ బిట్ కాయిన్, డోజి కాయిన్, ఏథెర్ వంటి వాటి పైన ఒక మిలియన్ రూపాయల పెట్టుబడులు పెట్టారంటే ఆశ్చర్యం కలగకమానదు.
Top cryptocurrency news on July 1: Major stories on Bitcoin, cryptocurrency and policies
A daily round-up of the most interesting articles on cryptocurrencies like BItcoin, Ethereum and Tether to help jump-start the day.
Market Buzz
Crypto market is mixed
Bitcoin, ethereum and other major cryptocurrencies are currently trading mixed. The global crypto market cap is $1.45 trillion, 0.33 percent lower than the previous day. Read more here
Big Story
Made gains from cryptocurrencies? Know the income tax implications
It can be easily seen that the hesitation and dissatisfaction with the cryptocurrency culture in India is decreasing at a steady pace. People are finding a great opportunity to make good returns with it. However, even after an enormous growth in the number of crypto currency traders and investors, people are worried about taxation on cryptocurrency in India. They are worried about its future here. Here are the tax implications of trading in cryptocurrencies. See full here.Now This
Gisele Bundchen to pick up stake in crypto exchange FTX
National Football League quarterback Tom Brady and his supermodel wife, Gisele Bundchen, will each take an undisclosed equity stake in crypto exchange platform FTX Trading Ltd, the company said on June 29. Under the deal, Brady will also become an FTX ambassador and Bundchen will take the role of environmental and social initiatives adviser.
Both will receive an unspecified amount of cryptocurrency, the company said. Founded and led by Sam Bankman-Fried, a 29-year-old crypto veteran billionaire, FTX is in talks to raise $1 billion at a valuation of $20 billion, according to media reports. Brady, a seven-time Super Bowl champion, has long been an advocate of cryptocurrencies.
In June, he edited his Twitter profile photo to one with a "laser eyes" meme - a popular internet fad among supporters of cryptocurrency. Earlier this year, Brady also said he would launch a Non-Fungible Token (NFT) platform called Autograph that will bring together iconic brands from sports, entertainment, fashion and pop culture to create digital collectibles. (Reuters)Analysis
Countries, Regulations, and Cryptocurrencies: Why adopting Bitcoin is difficult for many countries
June was pretty significant for Bitcoin and other cryptocurrencies as two countries gave a very, very different perspective over this digital coin- First, it was El Salvador which became the first country in the world to adopt Bitcoin as a legal tender, and on the other side China which carried out a massive crackdown on the digital coin and cryptocurrencies asking its financial institutions including banks and online payment firms do not provide any cryptocurrency-related services.Like the two mentioned above, many countries are still in a cliffhanger on which side they should choose concerning Bitcoin and cryptocurrencies. But, even though there have been various opinions regarding digital coins and tokens, certain features still stop cryptocurrencies from going mainstream and challenging the fiats. Lets us look at a few of them Read more here
Comments
Post a Comment