Reserve Bank of India (RBI) Governor Shaktikanta Das reiterated his position at a press conference on June 4 (local time), stating that he continues to have great concerns about cryptocurrencies. Coinpost reported this on the 5th.
On May 31st, the bank account service ban policy for cryptocurrency-related companies in 2018 just issued a statement saying, “It is currently invalid, do not refer to it”, but it does not seem to have taken an active stance toward cryptocurrency.
In February, Das also made a remark to the effect that the RBI has concerns about cryptocurrencies in terms of financial stability. Again, “there is no change in RBI’s position. We have great concerns about cryptocurrencies and have communicated them to the government,” he said.
Also, on whether Indians should invest in cryptocurrencies, the following comments: Whether or not to invest in cryptocurrencies should be decided by each individual investor.
“Cryptocurrency investment is something each investor evaluates on their own, conducts due diligence*, considers very carefully, and then decides whether to invest money.”
※ Due Diligence: Antecedents of all aspects of an investment target in order to accurately estimate profitability from the investor’s point of view.
[What is the attitude of financial institutions toward cryptocurrency-related accounts?]
In 2018, the Reserve Bank of India (RBI) passed a rule restricting banks and other financial institutions from transacting with crypto-related customers, but in 2020 India’s Supreme Court found it unconstitutional. The ban was invalidated.
However, there were situations where some banks were still limiting customers by citing the old ban, so on the 31st of last month the RBI cautioned not to refer to the old notice. President Das also confirmed this case again this time.
“I was surprised that some banks were still citing outdated notices in their conversations with their customers. It must be clearly stated that this notice has been destroyed. It is wrong to refer.”
Upon confirmation of the withdrawal of the ban at the end of May, India’s large bank HDFC Bank also issued a statement to ignore letters warning users involved in cryptocurrency transactions to “close their accounts”.
Meanwhile, the head of a cryptocurrency exchange said in an interview with the local media The Economic Times, “Some small banks are in a position to reconsider their policies, but other large banks are still skeptical about trading with cryptocurrency operators.”
It is unclear whether the governor’s announcement to withdraw the ban this time will be of great help to the cryptocurrency industry. In May, it was also reported that the RBI was appealing to exchanges and investors to refrain from providing banking services from the bottom of the water.
[Committee review to investigate cryptocurrency regulation]
The Economic Times reported in May that the Indian government is considering forming a new expert committee to find ways to regulate cryptocurrency, citing relevant sources.
According to the report, this committee may investigate the use of blockchain technology and take the direction of regulating cryptocurrency as a “digital asset” rather than a “currency”. It is said that there are government officials who express the view that “a new view is needed rather than a total ban.”
However, discussions about setting up the committee are still in their infancy, and the Indian Ministry of Finance continues to monitor the growth of cryptocurrency trading volume in the country, the source said.
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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.