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Banking industry

Banks Reopen Doors to Cryptocurrency Exchanges Two Years After Ban

Strategic Insights

— 1 min read

Two years after top banks in India stopped dealing with cryptocurrency exchanges and their customers on the central bank's direction, the two sides are now back in business. Top banks, including State Bank of India, HDFC Bank, Yes Bank, and ICICI Bank, have started allowing customers to use bank accounts on cryptocurrency trading platforms. The banks are also reaching out to cryptocurrency exchanges and offering them several facilities, such as loans and financial requirements. This move comes after the Supreme Court quashed the RBI's circular in March 2020, paving the way for cryptocurrency exchanges to restart operations.

Key Takeaways:

  • Top banks in India, including State Bank of India, HDFC Bank, Yes Bank, and ICICI Bank, have resumed dealings with cryptocurrency exchanges and their customers after a two-year ban.
  • The banks have started allowing customers to use bank accounts on cryptocurrency trading platforms, including CoinSwitch, CoinDcx, ZebPay, WazirX, and Unocoin.
  • Banks are offering loans and financial requirements to cryptocurrency exchanges, with WazirX chief executive Nischal Shetty saying that the exchanges have seen a significant increase in trading volumes in the last few months.
  • The current lack of clarity on regulations around cryptocurrency in India has led banks to be cautious in their dealings with exchanges, with one banker stating that they are dealing with "select" exchanges and monitoring their activities.
  • The rise in cryptocurrency prices, with Bitcoin reaching as high as $20,000, has led to a surge in trading volumes on cryptocurrency exchanges.

Statistics:

  • The price of Bitcoin rose to as high as $20,000 in recent months.
  • The Supreme Court quashed the RBI's circular in March 2020, paving the way for cryptocurrency exchanges to restart operations.
  • Trading volumes on cryptocurrency exchanges, including CoinSwitch, CoinDcx, ZebPay, WazirX, and Unocoin, have seen a significant increase in the last few months.
  • Top Indian banks are now offering services to cryptocurrency trading companies, including loans and financial requirements.

Sources:

  • ET
  • Indian Government
  • RBI
  • Supreme Court
  • Nischal Shetty, WazirX Chief Executive
  • Banker ( anonymous)
  • CoinSwitch
  • CoinDcx
  • ZebPay
  • Unocoin

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