Before all else, Congratulations to you, Kuberian! The RBI itself has come forward to clear the air around cryptocurrencies 🙂
Over the last few weeks, several banks from all over the country were turning their backs to cryptocurrencies by referring to the 2018 RBI circular against cryptocurrencies. They were doing so because of a lack of clarity on the subject matter. As soon as this caught the central bank’s eyes, RBI took this moment to address the ambiguity.
They immediately rolled out a fresh circular on 31st May 2021 that said:
“It has come to our attention through media reports that certain banks/regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular dated April 06, 2018,” the central bank said.
“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 04, 2020. As such, in view of the order… the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from,” RBI said.
After explicitly specifying that the old circular does not stand valid since March 2020, the Reserve Bank of India suggested that banks may carry on their dealings in cryptocurrencies as they would under existing regulations.
What does this mean?
- Banks can no longer refer to the old circular and flag crypto transactions made by you.
- They cannot cite the 2018 circular and warn you against crypto transactions.
We are thankful to RBI for bringing about the much-needed clarity to cryptocurrencies.
After positive responses like this, including the MCA announcement and the government’s keenness to set up a new panel for exploring crypto regulation; It would be safe for us to say that it’s only onward and upwards for cryptocurrencies from here.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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