Indian central bank clarifies regulations as local banks shun crypto

India’s central bank has issued an official discover relating to the truth that local banks are reportedly cautioning prospects in opposition to utilizing cryptocurrencies like Bitcoin (BTC).

Published Monday, the discover points out that the Reserve Bank of India is conscious of media studies that sure banks have cautioned their prospects in opposition to crypto by referring to the RBI’s quashed, three-year-old circular.

“Such references to the above circular by banks/ regulated entities are not in order as this circular was set aside by the Hon’ble Supreme Court on March 4, 2020 in the matter of Writ Petition,” the discover reads, emphasizing that the round is now not legitimate and can’t be cited.

However, banks and different regulated monetary establishments can nonetheless perform buyer due diligence processes associated to Anti-Money Laundering and Know Your Customer requirements beneath the Prevention of Money Laundering Act of 2002, the RBI famous.

The RBI’s assertion is available in response to media studies claiming that a few of India’s largest banks, like HDFC Bank and the State Bank of India, have cautioned their prospects in opposition to dealing in digital currencies. Some customers claimed that HDFC Bank cited the RBI’s 2018 order banning crypto buying and selling in India. The ban was formally overturned in March 2020 by the Supreme Court of India.

The news provides to the prevailing uncertainty relating to the authorized standing of crypto in India. Earlier this yr, nameless sources claimed that the federal government was planning a blanket ban on crypto.