RBI Requests Banks to Stop Negotiating with Crypto Exchanges
Crypto Guide
Live News

Keeping up with all the cryptocurrency news and updates is not an easy task, but we are up to the challenge! This way we can help our readers to keep track of changes in these fast growing currencies. Just like our site, lambo2btc.com is willing to face this challenge and on their site, they compile the features, key elements, and recent news involving bitcoin casino sites and which are the best to try!

RBI Requests Banks to Stop Negotiating with Crypto Exchanges

May 14, 2021      Kavya Barua

The Reserve Bank of India is taking a creative approach to subvert the country’s booming cryptocurrency industry.  RBI requests controlled banks to stop negotiating with crypto exchanges on an informal basis.

RBI Requests Controlled Banks to Stop Negotiating with Crypto Exchanges

After a Supreme Court ruling that banks can work with the industry, India’s central bank Reserve Bank of India (RBI) requests other banks to stop negotiating with crypto exchanges and traders as the highly volatile market booms.

The regulator has been informally questioning us about why we are dealing with such speculative industry. This trade sends a lot of money overseas, which the RBI is concerned about because it could lead to money laundering.”

Though official figures are still unknown, India is thought to have 10 million cryptocurrency investors who have invested more than $1.36 billion. With the recent rally in digital currency values, these figures are rapidly increasing.

The emergence of cryptocurrencies has also become a source of concern for the Indian central bank and government. The Indian government is set to pass a new law banning cryptocurrencies, but the country’s harsh Covid-19 situation has cracked down on those plans.

Although the country’s Supreme Court came out in favor of Indian crypto exchanges to overturn the regulator’s previous ban on crypto exchanges receiving banking services, the RBI is now acting informally against crypto.

“It’s enough, even though the conversations are informal. No one wants to go against the regulator.”

Banks Are Abandoning Cryptocurrencies

Several top lenders are taking a pragmatic approach to block crypto-related transactions, indicating that the strategy is working. ICICI Bank, one of India’s largest private lenders, is asking payment service providers to avoid encrypting cryptocurrency transactions. 

Axis Bank, Citibank, and Kotak Mahindra Bank are among the other major banks that have taken a serious approach to cryptocurrencies.

Axis Bank has taken a decidedly anti-crypto approach. They’ve stopped transactions with crypto exchanges, citing internal policy and risk measures,” said the CEO of a major crypto exchange with operations in India.

The advice comes as India is drafting legislation to prohibit cryptocurrencies and punish anyone who trades in them, in what will be one of the world’s widest crackdowns on the new investment trend.

READ  BSV Genesis Upgrade Results In A Minor Chain Split
#Crypto Exchange #Cryptocurrencies #RBI vs Crypto #Reserve Bank of India
Kavya Barua
Kavya Barua

Kavya Barua is in her final year of graduation from University of Delhi's, B.A (Hons) English program at Janki Devi Memorial College. She is an avid learner with a taste for advancements in crypto and Fintech. She is gaining interest in digital marketing and being a part of the organization where continuous growth and learning is assured and fulfilling the expectations of her knowledge and skills. She aspires to have a good career path with interest and ability to learn and deliver the results.