Cryptocurrency in India: Banks Slash Ties After RBI's Advise, Worries Crypto Traders, Says Report

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New Delhi, July 1: Amid the reports that the Reserve Bank of India has asked the banks to reconsider their associations with traders and exchanges dealing in cryptocurrency, several people working in the field are reportedly trying to find alternatives to ensure smooth and uninterrupted transactions and payment solutions. According to a report by Reuters, some exchanges dealing in the cryptocurrencies are seeking affiliation with smaller payment gateways, peer-to-peer transaction and manual settlement of the transaction. UK Watchdog Bans Cryptocurrency Exchange Binance.

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Avinash Shekhar, a co-chief executive of ZebPay, told the Reuters, "Banks are reluctant to do business." "We have been talking to several payment partners but the progress has been slow," he reportedly added. Another issue being that the smaller payment gateways are not successful enough in processing and completing high volume transactions. The market and dealers have been hit hard by this. Any Cryptocurrency Transfer Over $10,000 To Be Reported to IRS, Says US Treasury Department.

Several reports suggest that the Indian Government plans to put a ban on trading of cryptocurrencies in the country. In 2018 the RBI issued a circular advising various entities it regulates to avoid dealing in the cryptocurrency. However in 2020, the Supreme Court overturned this curricular, thereby permitting the banks to deal in the same.

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