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Report points out that Bitcoin rally attracts financial institutions to heat up the cryptocurrency industry in India

More and more institutions are looking to Bitcoin and cryptocurrencies to increase their investment portfolios, and not just in India

As Bitcoin’s brilliance outstrips stocks, precious metals and the dollar, India’s banks are warming up for the industry and seeing this as an opportunity. Banks are exploring cryptocurrency loans and accepting Bitcoin as collateral.

In March of this year, the Supreme Court lifted a two-year ban by the Reserve Bank of India on the cryptocurrency trade. It allowed banks and financial institutions to provide services related to cryptocurrencies.

Nischal Shetty, founder and CEO of cryptocurrency exchange WazirX told Business Standard in an interview that despite the revocation of the SC, the banks did not occupy themselves with the space, as there was no RBI guideline. However, the RBI in response to a recent RTI said that there is no ban on banks from carrying out activities related to cryptocurrencies, making room for banks to offer services.

To capitalize on an industry that has thrived even in the pandemic, many more Indian banks are seeking exchanges, such as WazirX, for working capital, loans and other financial needs, the report said. Since March, the company has seen a 916% increase in monthly transaction volume and 280% in user enrollments, the report said.

CREBACO (credit rating for exchange, blockchain and currency offers) has global estimates, based on traffic from Indian IP addresses, that the size of the crypto market in India has expanded by 40 percent in the past two years, currently owning more than 800,000 registered merchants.

In collaboration with the law firm Khaitan and Co., CREBACO has been working on proposals to modify existing regulations, such as FEMA and SEBI, to regulate the flow of money and raise capital. It is also working on changes to the Income Tax and GST laws to recognize violations.

Source: Deccan Herald

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