The Reserve Bank of India (RBI) has clarified the situation on the ban imposed on the trading of cryptocurrencies. The central bank has said that the Supreme Court has rejected the circular citing many banks of the country warning customers to stay away from cryptocurrency. 

RBI clarification on Bitcoin and crypto trading

In such a situation, the validity of his order is over.

The Reserve Bank of India has given a big relief to Indian investors investing capital in cryptocurrencies

The RBI has said that the Supreme Court on March 4, 2020, has rejected the circular issued by the banks on 6 April 2018 instructing their customers to stay away from trading in digital currency.

 In other words, after the clarification of the Reserve Bank, the way of buying and selling cryptocurrency in India has become clear. Let us inform you that many public and private banks, including State Bank of India and HDFC Bank, had sent e-mails to their customers, instructing them to stay away from dealing in virtual currency.

Instructed to follow all rules including KYC.

RBI has instructed banks and other institutions to strictly follow KYC rules, anti-money laundering, and other rules while investing in cryptocurrencies. 

Explain that banks had also refused to provide services of a cryptocurrency exchange to their customers citing the old circular of RBI. India's largest cryptocurrency exchange Wazir-X (WazirX) faced a lot of trouble during May 2021 in depositing and withdrawing customer funds along with its banking partners. 

Earlier in many media reports, it was also told that many banks had also warned their customers to suspend accounts when they deal in cryptocurrency.

It happened that some banks, including SBI and HDFC Bank, were sent a warning email to customers asking them to stay away from buying and selling cryptocurrencies like Bitcoin / Dogecoin. 

Also cautioned that their bank cards may be canceled if the warning is not followed. On this, the Reserve Bank has given relief to those investing in cryptocurrency by clearing the situation. 

The central bank said that the circular which the bank is referring to for this warning has been rejected by the Supreme Court. In this case, the validity of his old order has ended.

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