The regulatory framework of cryptocurrencies in India was not always certain. And if there is something that hinders innovation, then it is regulatory uncertainty!
But now, exciting developments regarding the regulation of cryptocurrencies take place in India!
The central bank of India told Indian banks not to cite its circular from April 2018 anymore. That circular stated that banks are not allowed to deal with any company from the crypto industry. In general: there was always a back-and-forth, whether cryptocurrencies are banned or not.
This year already, the Indian supreme court said that banks could deal with companies from the crypto industry. Despite the circular from 2018!
Nonetheless, banks still hinder people from interacting with crypto services. According to Decrypt, Indian Banks are not allowing crypto because of their internal compliance policy. But not because of the Reserve Bank of India.
The Indian Supreme Court and the Reserve Bank clarified that banks should not rely on the defeated crypto ban. This represents a huge step in the right direction! Two major institutions give regulatory transparency. Thus, the general circumstances are provided to bootstrap innovation.
Indeed, if banks remain to hinder people from using crypto services, many projects are stuck. But in the end, no bank in the world can fight against the power of decentralized technologies!
It will be exciting to see how things will develop over time in India!