A few months ago, the Supreme Court of India turned down a ban on banks working with exchanges and after that several crypto exchanges started taking the helm establishing themselves. But a looming darkness may again about to fall on the country’s crypto industry as the government of India may be about to ban crypto altogether.
CoinSwitch launched an app on June 1 namely CoinSwitch Kuber, has signed up more than 100,000 users so far and it’s really simple to use. The CEO of CoinSwitch, Ashish Singhal, said they were in touch with the bank for many weeks and prepared the required documents but even after so, at the time of trying to open a business account, he received a rejection from a private bank.
The Reserve Bank of India says there is no banking ban on place but Indian commercial banks are still waiting for further instructions from the central bank. A senior banker confirmed once they get clarity, they will be guided by RBI’s directions. Banks are yet concerned about the security, use of money and traceability issue of cryptocurrency.
On the other hand CEO of WazirX, Nischal Shetty, defamed a RBI edict issued in April 2018 that barred banks from facilitating any service in relation to virtual currencies.
Maybe lacking of banking regulation can be a cause here. Shetty kept himself active on Twitter starting a Twitter campaign namely #IndiaWantsCrypto. The tactic and program has also started being followed by other exchanges including CoinDCX. Indian crypto industry has seen high interest women and youngsters and the rate is 52%. Shetty had also high support from women to his campaign.
Shetty wants the government to act like the Telangana State government who fosters blockchain technology. Mobile Association of India (IMAI) and the trade body internet want to be heard by RBI and the government and make the policy collaborately.
Youngsters can multiply money infinite times using through crypto. Shetty thinks if they are late movers then probably India will lose innovation. A New York-based Indian crypto investor, Pankaj Jain, said the Indian government has a history of banning what it doesn’t understand. As a large portion of India’s population is unbanked so crypto provides an easy exchange facility to them. Exchanges are waiting for demonetization moment when RBI would give green signal to cryptos.