The Indian central bank has explicitly confirmed that it has ended its anti-Bitcoin (BTC) policy and no longer instructs banks to boycott traders and exchanges. Now foreign investors are investing in the Indian crypto industry:
India is home to nearly 1.4 billion people and its younger demographics should soon outpace China as the world’s most populated country. However, the subcontinent’s Bitcoin (BTC) and crypto industry is only just awakening after the Reserve Bank of India (RBI) held it back for a long time.
Indian central bank no longer blocks Bitcoin (BTC)
Since April 2018, the central bank had made it virtually impossible to operate exchanges. It instructed all Indian banks to no longer serve customers with cryptocurrencies. However, the turnaround came in March of this year, when the Indian Supreme Court reversed this decision.
Harish BV, co-founder of the local crypto company Unocoin, has now had it confirmed in a statement that RBI’s anti-crypto policy is over:
„Question: Does RBI prohibit banks from providing crypto exchanges or crypto traders with bank accounts?
Answer from RBI: At the present time, there is no such prohibition.“
In the time before the Supreme Court ruling, banks not only banned exchanges, but also forced ordinary customers to stay away from cryptocurrencies. At Kotak Mahindra Bank, for example, you had to make the following statement to be allowed to open an account at all
„I hereby declare that I will not engage in any transaction involving cryptocurrencies, including Bitcoin. I also understand and agree that the Bank reserves the right to close my account without warning if it is discovered that I am making such transactions.
Foreign investment in Indian Exchange
Now that the restrictions have ended, the path is open for overseas investment in the Indian crypto industry: One of the beneficiaries is the local exchange CoinDCX. The local exchange CoinDCX, for example, has raised 2.5 million US dollars in a recently announced investment round. The main investors were the crypto investment company Polychain Capital and the US exchange Coinbase.
As recently as March, the crypto exchange had collected three million US dollars in a first investment round. Polychain was also the main investor in this round. According to Sumit Gupta, co-founder and CEO of CoinDCX, the current daily trading volume of the exchange is 15 million US dollars. In the last two months, the company has gained 50,000 new users.