India’s cryptocurrency exchanges are calling on local banks not to block their transactions.
Cryptocurrency exchanges in Mumbai are reportedly struggling with payment gateways and banks, which they accuse of blocking their transactions by citing an old Reserve Bank of India (RBI) policy to ban digital currency dealings. They claim the policy had been struck down by the country’s Supreme Court last year, regional media reports.
Nischal Shetty, chief executive officer of cryptocurrency exchange Wazirx, took to Twitter on Tuesday to air his frustration over banks’ refusal to process cryptocurrency transactions.
“Confusion in India’s banking industry is hurting 1.5 Crore [15 million] Indians in crypto. The Honorable Supreme Court of India has set aside the crypto circular of 2018. Banks in India still cite that circular to deny banking. Request @RBI please clarify and help,” Shetty said in his Tweet.
The executive followed this with another tweet, “I request banks in India to update their compliance teams about the Supreme Court ruling that set aside the RBI circular against crypto,” Shetty wrote. “It’s not fair that the crypto industry has a clear go-ahead from the Supreme Court of India, and yet banks deny banking to the industry.”
To date, local banks in the region have not issued an explanation for the latest round of restrictions.
The Economic Times cited an unnamed senior executive of a major payment gateway company who offered one possible reason. The executive hinted that banks are trying to protect investors amidst increased interest in penny tokens and ramped-up advertising surrounding crypto.