TronWeekly

Crypto World News

You are here: Home / Archives for cryptocurrency india

cryptocurrency india

Indian Banks Hesitating to Embrace Crypto Industry Albeit RBI Consent

by

The Reserve Bank of India (RBI) reversal of the outright crypto-currency ban in March was a gift to the flourishing Indian crypto-industry. The country’s emergence of new exchange platforms has been the incentive to the industry ‘s steady and healthy growth.

While India is one of the most affected nations by the coronavirus pandemic, this significant growth is noticeable. Indeed, the epidemic has led to a downward economic disaster across the nation. In such crisis-ridden times, blockchain and digital currencies have proved the desperately needed remedy for both investors and fintech ground-breakers alike.

Crypto regulatory wariness

Nevertheless, lifting the blanket ban seems was not the ultimate solution to the regulatory uncertainty that most had hoped to be. There have been alleged incidents where Indian banks have denied financial services to crypto-related firms. The good thing is that the industry has a more explicit regulatory structure than there was in 2017; the extent of cynicism and turmoil was sky-high.

Notably, a rumour emerged within the Indian Ministry of Finance for interdepartmental consultation on a law proposing all crypto operations to be abashed. The draft law proposal involved a heavy financial penalty for guilty individuals and a prolonged prison sentence. Recently, the rumour was refuted.

According to a business consultancy firm, AKM Global, if the proposal for a blanket ban passes into law in its current fashion, it would “completely decimate the crypto-industry in India.” Rumor has aroused the already fading fears in the crypto-currency industry in India. Regardless of the recent rumors, Nischal Shetty, CEO of WazirX, still maintains confidence with the government.

An email sent to Cointelegraph’s crypto media outlet quoted:

“On the day the news about the ‘note’ broke out, it created some panic among the community. But that’s all. We are not seeing any difference in the trading behaviour on WazirX since then. There have been speculations about crypto ban in the past as well. With more than 5 million crypto users in India, I’m confident that our Prime Minister won’t let us down.”

Indian Banks reluctance to embrace crypto industry

In addition to RBI, certain private commercial banks in India have refused to process cryptocurrency transactions. However, a large percentage of speculations suggest the reason why the cryptocurrency sector lacks knowledge; as noted within various government bodies.

Siddharth Sogani, the founder of Crebaco research firm, believes that there may be further conflicting interests at play. According to him, “Banks will always be globally opposed to this industry because if crypto comes into action; P2P transactions will eliminate the need for third-party bankers.”

Regardless, in response to a request for information from the co-founder of the crypto exchange Unocoin, Harish BV, the RBI did not, in fact, indicate any limitations on banks offering crypto-related companies and individual traders to account. This was the major RBI statement that presumably banks were waiting for, but the actual quantifiable effects remain.

Binance Becomes the Latest Member of the Indian Internet Association

by

The top cryptocurrency trading and exchange platform, Binance, has become the newest member of the Indian Cryptocurrency Exchange Committee of the Internet and Mobile Association (IAMAI). Although uncertainty is looming over the Indian cryptocurrency sector, leading cryptocurrency exchanges have joined the nation’s top Internet association.

The association is the leading trading body that speaks on behalf of Indian crypto firms. In particular, the association was a key advocate of petitioning Indian legislators to Reserve Bank of India to the previous banking bank. The Supreme Court of India overturned the rule at the beginning of 2020.

Binance expanding its operations to India’s budding industry

Binance’s membership comes at a crucial time when the Indian Ministry of Finance progresses with its proposal to permanently ban digital currencies in the country, about seven days ago. 

The top exchange on platform announced its IAMAI membership on June 18, stating that it will work to carry out the best international enactments to trigger the growth of the Indian cryptocurrency industry. According to the founder of Binance, Changpeng ‘CZ’ Zhao:

“Binance is honored and excited to join IAMAI and contribute our part in shaping the Indian blockchain industry for sustainable growth and development.”

 

India’s cryptocurrency industry facing uncertainty

Following the partnership, Binance will roll out a ‘Blockchain for India Fund’ to finance development and innovation in India’s blockchain sector. Binance will work together with the Indian authorities and regulators to advise on the best regulatory structure of cryptocurrencies in India. 

Although the ban on providing banking services to crypto-related firms was lifted in March, India’s blossoming crypto industry is still under threat. For instance, banks in India continue to marginalize crypto-related activities and unclear taxation structure of crypto assets. Notably, the most significant danger is presented by the latest proposal to impose a blanket ban on India’s digital currencies. 

Ripple offers Recommendations to Indian Legislators on Transparent Crypto Regulatory Frameworks

by

Ripple ‘s new white paper offers a crypto-regulatory frameworks to the Indian legislature in response to the Supreme Court’s decision on cryptocurrencies. The Indian crypto sector is currently clouded with precariousness; despite the country ‘s apex court’s reversal of the previous Indian Reserve Bank ban.

The Supreme Court’s lifting of the ban on banking services did not provide a legal policy for legitimizing the country’s digital currencies. Nevertheless, the cross-border settlement network, Ripple, has published a white paper summarizing the recommended legal structure for cryptocurrencies in the country.

 

Ripple’s crypto regulatory recommendations to India

According to regulatory head for Ripple in Asia, Sagar Sarbhai noted that:

“India is currently presented with an opportunity to develop a regulatory framework for a native digital assets ecosystem. We are optimistic about that after a careful deliberation and consultation with industry participants.” 

According to him, the new Indian digital asset legal policy should be technologically cynical, principle-based, and risk-adjusted to provide clarity on the legal structure that can guide, maintain, and mitigate any related risks.

The Crypto Regulatory Recommendations provided by Ripple would sort out the cloud of uncertainty surrounding the Indian cryptocurrency industry. Although the Supreme Court lifted India’s RBI crypto ban on legal grounds that the administration could not suppress commodities that individuals choose to hold, it did not provide a clear legal guideline for digital currencies.

India Awaiting Legal Clarity

To fulfill the legal desires, Ripple’s crypto regulatory recommendations propose a digital asset taxonomy in line with international guidelines, and an adjustment on the central bank’s Regulatory Sandbox Framework to exclude “cryptocurrency” and “cryptoasset services” from the negative records.

Indian lawmakers will head back to parliament in July, with cryptocurrency legal concerns in mind. Despite the uncertainty, Ripple is still optimistic that India will reap the economic benefits of shrewd regulation and create a structure that encourages development and growth.

5 Suspects Wanted For Operating Indian Cryptocurrency Scam

by

Law enforcement has recorded a case of five people who are suspected of running an Indian cryptocurrency scam that has been duping investors for over three years. Although the alleged fraud has been running for several years, the suspects are believed to only get away with a little recompense of about $34,200.

According to a report by New Indian Express on June 13, the five individuals were allegedly booked for hoodwinking investors in the disguise of virtual assets investment. The Indian cryptocurrency scam was single-handedly operated by the five suspects in Maharashtra state’s district of Palghar.

The scammers promised investors massive returns if they venture into their cryptocurrency investments. According to the report, the group solicited payments in the form of cash and bank cheques. However, the group became highly vague while interacting with the investors after receiving the funds as per the local police.

In the meantime, none of the five individuals has been detained so far. In March, two brothers, Amrit Bhardwaj and Vivek Bhardwaj were indicted by the authorities for running the multi-level marketing crypto scam GainBitcoin. The two have since been moved from the cyber Cell to an Indian police crime unit.

Police cracking down Indian Cryptocurrency Scam

The law enforcement in India has recently stepped up its efforts to crack down cyber crimes and crypto-related crimes. The police recently announced plans to develop an AI-powered web portal for dark web policing. Besides, law enforcement has also partnered with foreign regulators to apprehend free-market vendors dealing with unlicensed pharmaceuticals or drugs

Furthermore, the notion that cryptocurrencies may facilitate illegal activities might prove costly for the Indian crypto community. Recently, the Indian Ministry of Finance proposed another blanket ban on cryptocurrencies in the country; just three months after the Reserve Bank of India (RBI) lifted the banking services ban.

RBI Calls Out all Banks Who Refuse to Provide Accounts to Crypto Organizations, Claims There Are No More Bans

by

The Indian market has always been seen as an enemy of the cryptocurrency industry, with Reserve Bank of India  (RBI) acting as an antagonist. Indian cryptocurrency supporters were recently won by the Supreme Court’s decision to lift the 2018 crypto ban.

Despite the change, there have been some industry complaints about mainstream banks preferring traditional set-ups rather than emerging virtual asset companies. In order to combat this difference of opinion, Unocoin, co-founder of BV Harish, took matters into his own hands.

Just recently, Harish filed a  Right to Information [RTI] with the Supreme Court to inquire whether provisions were in place to address the bias shown by the institutions. The Reserve Bank has expressly stated that the new legislation applies equally to all bodies, regardless of their affiliation with the financial department. The RTI premise was based on a report that banks were not issuing accounts to cryptocurrency traders.

The RBI took almost a month to respond to the initial RTI that was much talked about in the cryptocurrency world. According to the central bank, there were no prohibitions or restrictions that would set aside any individual or organization working in the digital asset world. The main reason for the bank’s reply was the sheer number of complaints from the Crypto Department. Speaking on the RBI’s latest revelation, Harish said:

“ Bankers have been saying that they need new RBI circulars mentioning that there are no more restrictions for them to provide bank accounts for crypto businesses. Now, we have received a positive response from the RBI. ”

The RBI was just one of the bodies that responded to the requests, while several major players remained silent on the issue. Banking giants such as SBI, HDFC, and Axis Bank have yet to comment on the plight of cryptocurrency officials. Despite the backlash from the mainstream community, enthusiasts like Harish are out to prove how crypto can benefit people.

Ever since the original ban on crypto was lifted in March, the people involved in the sphere predicted that the ride would not be as peachy as it seems. It makes sense why the banks did not pay any attention to crypto: restricted mindset.   Many supporters believe that if major organizations could overcome the mental hurdle, a lot of pieces would start to fall into place.