Cryptocurrency News

Major Indian Banks Now Support Crypto Related Transactions.

Indian banks are proceeding with business with selected cryptocurrency exchanges and their customers.

Leading banking giants along with State Bank Of India, ICICI Bank, HDFC Bank, and Yes Bank are now permitting their customers to use their bank accounts to fund cryptocurrency trading. They’re further offering various facilities to cryptocurrency exchanges, sources conversant in the matter told The Economic Times.

Accounts of major exchanges had been suspended after the RBI issued an order barring banks from using their systems for crypto-related transactions earlier in the month of April 2018. The ban was quashed by the Supreme Court earlier this year.

“Banks earlier took a cautious approach even after the supreme court overruled the central bank’s cryptocurrency ban earlier in March.” Gaurav Dahake, Founder & CEO of Bangalore-based exchange Bitbns. “But with time and price momentum around Bitcoin [BTC, -0.78%], & tons more clients started demanding them to open up an account specific to cryptocurrency trading and banks have started opening them up now.”

Bitcoin recently high to a new record high of $19,920 USD, topping the earlier peak price of $19,783 USD reached earlier in December 2017.

The CEO of Mumbai-based cryptocurrency exchange CoinDCX, Sumit Gupta, confirmed via WhatsApp that his exchange has been collaborating with multiple banking partners to create and develop business services ever since the Supreme Courts’ order was overturned.

Moreover, Nischal Shetty, CEO of Binance-backed cryptocurrency exchange WazirX,  added that banks have reached out to the firm to offer capital or other loans and financial services.

A banker, however, told The Economic Times that his bank remains cautious while handling cryptocurrency exchanges and serves solely a few thus far.

While banks have begun serving cryptocurrency exchanges and traders, the Indian government’s stance on cryptocurrency trading remains unclear. As of September, the govt. was said to be mulling a ban on cryptocurrency trading but exploring blockchain’s utility in managing land records, the pharma supply chain, and academic certificate records.

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