In an interesting turn, crypto traders in India have got an option to continue with cryptocurrency investment even after the ban imposed by the RBI.
Recently we heard of Reserve Bank of India(RBI) prohibiting banks from providing any accounts to crypto investors. Furthermore, investors also approached the government for coming up with an alternate option of regulating instead of banning it. But there seems to happy news for investors as State bank of Sikkim based in Gangtok does not fall under the jurisdiction of RBI.
It comes as no surprise as RTI(Right to Information) filed by New Delhi based lawyer revealed RBI acceptance statement. The statement elaborated stating that,
“RBI has no specific information to furnish. However, it may be noted that SBS was constituted in terms of the State Bank of Sikkim Proclamation,1968. SBS is not licensed under Section 22(1) of the Banking Regulation Act, 1949 by Reserve Bank of India. Banking Regulation Act, 1949 is not yet applicable to SBS”
It is clear from above statement that as SBS doesn’t fall under Banking Regulation Act and investors are free to trade using SBS accounts.
In response to this WazirX exchange site CEO Nischal Shetty quoted that,
People in the cryptocurrency community are actively talking about it and are considering opening an account with SBS
However, this good news comes with its own caveats. The challenging factor here is the trader and buying party both should hold accounts in SBS bank and also local residence proofs to open an account etc.,
Now it remains as a question whether Indian crypto community will use this or any other approach to continue trading or succumb to government rules.
So readers, what do you think of this alternate option for Indian Crypto Community for trading? Let us know your thoughts in comments.
