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Bitcoin regulation: RBI orders banks to work with crypto exchanges in India

bitcoin regulation

Following the removal of restrictions placed on Bitcoin in India by the supreme court in March, financial houses were given the green light to work with crypto exchanges across the country.

After the ruling, financial houses across the Asian country still refused to provide their services to crypto exchanges despite the removal of the Bitcoin regulation.

In light of this development, RBI has clarified its statement on the removal of the ban staying that banks are allowed to work with individuals and crypto exchanges that their service.

RBI clarifies its stance on Bitcoin regulation

Exactly two years ago, Reserve Bank of India released a memo that went out to all crypto trading individuals and exchanges that it has banned all digital activities in the country.

The RBI said that financial houses were prohibited from working with crypto-related activities which further dampened the hopes on the adoption of the crypto across the country.

When the regulation on crypto was shelved,  analysts and the crypto community were overjoyed at the new while voicing their support for the move.

RBI sends letter to banks on Bitcoin regulation

After the ban was lifted, many crypto outfits were eager to return back to offer services to their customers but were met with a stumbling block when banks refused to offer them services.

The banks said they did not understand the details of the released statement stating that they don’t want to get in trouble.

The reason the bank didn’t work with the crypto exchanges in the country was due that RBI didn’t alert them and give them the go-ahead to start working with them.

To seek clear information on the new development, BV Harish, co-founder of Unocoin filed a petition to the RBI on their stance on the Bitcoin regulation. It was then the RBI clarified information and sent it out to respective banks in the country.

Ifeanyi Egede

Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile freelance writer and researcher on the blockchain space and related matters with published works online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.

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