Investors cheer after RBI issues clarification on cryptocurrency

The Reserve Bank of India has clarified in simple terms, that banks cannot deny their services to the crypto-community.

The Reserve Bank of India has informed all banks and regulated entities that their April 2018 circular should not be used to warn their customers about cryptocurrency trading. Cryptocurrency exchanges and traders have applauded the decision.

Despite the fact that the central bank’s statement is objective, it does indicate that India’s stance on cryptocurrencies is softening.

It comes at a critical time, as the government is working on rules to either ban or regulate cryptocurrency trading in the country; most crypto traders and exchanges in the country prefer the latter option.
The CEO of WazirX, Nischal Shetty, has praised the RBI’s statement, calling it “a positive development for the entire crypto sector in India.” Banks will now have more clarity in dealing with cryptocurrency exchanges, he claims.

Following the RBI’s announcement, crypto experts claim that the central bank has clarified its position on virtual currencies, which will help the industry grow. While developing a solid framework for cryptos will take time, the RBI’s clarification is a significant step forward.