RBI's lifting of curbs on banks providing services to the digital currency trade will unlock hitherto frozen assets, boost crypto business in India
Ajeet Khurana, former CEO, Zebpay (right) Sathvik Vishwanath, CEO and co-founder of Unocoin
After the Supreme Court's lifting of the Reserve Bank of India (RBI) ban on banks providing services to cryptocurrencies, crypto traders welcomed the development, calling it a milestone which will do away with misconceptions and confusion about the industry.
Regulated entities such as banks and NBFCs (Non-Banking Financial Companies) can now provide services to crypto businesses and unlock their wealth that was temporarily frozen in crypto assets.
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Sathvik Vishwanath, CEO and co-founder of Unocoin told mid-day: "This will bring a positive perspective towards crypto trading which became unclear during the prohibition. People with crypto assets can liquidate them and get money in their bank accounts. This will generate huge crypto trade and investment in India. The exchanges till now have only scratched the surface." Vishwanath emphasised that India has to catch up with the global industry and blockchain technology progression.
"I believe cryptocurrency is all about decentralisation. The moment it is centralised and regulated with ever-changing rules, it will lose the very properties that make it cryptocurrency," he said.
"I think this judgement also took away some misconceptions among citizens about cryptocurrency. The industry's future looks brighter," Vishwanath said.
Former head of BACC (Blockchain and Cryptocurrency Committee of the IAMAI) and former CEO of Zebpay, Ajeet Khurana, said that the RBI's unilateral action blocked crypto players from trading. "The decision to allow or disallow something must be taken through legislation and policy. We are glad our reasoning prevailed. I see cryptocurrency players embarking on growth plans with renewed vigour."
While SC's move has brought another asset class in India, Khurana cautioned that cryptocurrencies characteristics are unique and it could burn those who do not understand it well. "Educate yourself before getting into it. Another word of caution — in a new paradigm, there will always be conmen who will prey on the ignorant. Beware of them," he said.
"A centrally controlled cryptocurrency has its place in the world of finance, but it is more like a technological evolution such as moving from currency notes to digital wallets. Decentralised cryptocurrency such as Bitcoin reimagines money and its control," Khurana said.
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