Good news for Indian Crypto Startups – Central Bank (RBI) Clears to all Banks
2 years ago Tata Teja
The Reserve Bank of India (RBI) on May 31 clarified that banks and other regulated entities cannot cite the Supreme Court (SC) has set its 2018 circular on cryptocurrencies as it aside in March 2020. The circular is not valid from the date of the SC order and cannot be cited or quoted from, the RBI said.
However, the central bank asked banks to carry out the necessary customer due diligence process in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002.
In addition, banks need to ensure compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances, the RBI said. The RBI circular, called Customer Due Diligence for transactions in Virtual Currencies (VC), came shortly after major Indian banks have started warning customers against using their services to trade in cryptocurrencies.
Currently, India has more than 350+ blockchain startups. Out of those many have been acquired by Binance, a global crypto asset management and trading company including Unocoin, Zebpay, and WazirX. Majorly Banks are now free to work with crypto exchanges startups.with the clarification from RBI will come as a sign of relief for all investors in India who invested in cryptocurrency.
