HDFC Bank, one of the leading private banks in India with 5,406 branches and 16,08 ATMs, has published a report stating that “Indian investors have prior to having legal access to crypto plays.” ” The statement came as the bank was investigating crypto transactions in customer accounts.
HDFC Bank Predicts Legal Access to Crypto in India
HDFC Bank, a leading private bank in India, published a Treasury Research report last week detailing its outlook on cryptocurrencies. HDFC Bank currently has 5,608 branches and 16,087 ATMs across India. The bank was one of the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.
“Like most traditional investors, we have yet to reconcile the often-conflicting qualities of cryptocurrencies,” wrote the bank’s report, “Cryptocurrencies: Fad or Forever?” Recognizing that cryptocurrency “helps hedge against sharp movements in other asset classes,” the bank’s economists argued that “its own volatility…
Nevertheless, the report noted that “with the move of central banks into the cryptocurrency game, essential assets such as limited supply of legacy crypto, this is a place that needs to be watched closely.” Bank said:
We think it is only a matter of time before Indian investors have legal access to crypto plays.
The report further states that “cryptocurrency is one of the best-performing assets, with” B T c 10,869% return since 2015. The report also analyzes mem crypto Dogcoin. The bank explained that “the price of Dogcoin depends on the narrative” and that “there is no fundamental principle behind it that can stain prices.”
The bank did not specify what kind of legal access it was referring to. Cryptocurrency is not banned in India and investors can go to many local crypto exchanges to buy, sell and trade cryptocurrencies with INR. Both the central bank and the government independently Confirmed that there is no restriction on cryptocurrency, crypto exchange, business or trader in India.
However, the Government of India has a draft cryptocurrency bill which contains recommendations for banning cryptocurrencies like bitcoin. However, the government is reportedly setting up a panel of experts To reevaluate recommendations for crypto regulation.
This HDFC Bank report was published at a time when some customers of the bank said that they had received a letter stating that cryptocurrency transactions were not allowed. Bank referred to RBI Circular Since April 2018, that barred financial institutions from transacting in cryptocurrencies. However, the Supreme Court of India Rejected The circular came back in March last year, allowing banks to resume providing services to crypto businesses, including cryptocurrency exchanges.
Despite the Supreme Court ruling, many banks still refer to this circular when investigating crypto-related transactions in customer accounts. In its recent letter to customers, HDFC Bank wrote: “In order to comply with the regulatory guidelines… the banks are advised to exercise due diligence by continuously checking the transactions done in the account.” The bank’s letter ends with:
You are requested to visit the nearest HDFC Bank branch within 30 days from the date of this communication to clarify the nature of these transactions. If we do not listen to you, the bank will be bound to restrict the transactions in your account without any notice.
However, on Monday, India’s central bank Notice issued Clarifying to banks that the circular in question is “no longer valid” and should not be quoted or quoted when dealing with cryptocurrency.
Do you think cryptocurrency will be legalized in India soon? Let us know in the comments section below.
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