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Wednesday, January 26, 2022

Major Indian Banks Have Broken Their Bans With WazirX Crypto Exchange Deal

Indian banks are slow to accept the Supreme Court’s decision, which would allow them to do business with crypto firms.

Kotak, the leading private Indian bank, is the first to open its gates to this community, as published in Economic Times.

Indian Banks Might Get Into Partnerships To Boost The Crypto Community

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They have announced that they have partnered with WazirX, which is the leading crypto exchange. This would allow the traders to use the bank’s services to liquidate their funds. The partnership between Indian banks and the exchange is seen as a major event for this community given Indian banks had frozen crypto payments and withdrawals for the last 8 months.

Private banks in India have refused to do business with crypto platforms citing a lack of clarity on regulations and were often found using non-valid circulars from the Reserve Bank of India (RBI) to deny services. 

WazirX and Kotak did not immediately respond to any request for a comment on this matter.

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The RBI circular that is in question, dated back to 2018 where the Indian banks were ordered to avoid offering such services. This circular was later disqualified by the Supreme Court in March 2020. It had then cleared the Indian banks to offer their services, which had little to no effect on the bank’s actual behaviors.

The latest partnership between one of the leading Indian crypto exchanges WazirX and banking giant Kotak also hints toward positive crypto regulations in the making. The Indian government is set to discuss the cryptocurrency bill during the ongoing winter Parliamentary session. Industry insiders suggest that the government is looking to regulate digital assets as an asset class rather than imposing a blanket ban.

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