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| August 17, 2018

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Jack Ma’s Giant Financial Startup Is Shaking the Chinese Banking System

July 30, 2018 |

Ant Financial, which grew out of Alibaba, controls the world’s largest money-market fund, handled more payments last year than Mastercard and is more valuable than Goldman Sachs. Its power and disruptive capacity is drawing a backlash from Chinese banks—and also the government.
WSJ.com: What’s News Asia

PR: trade.Io Appoints Banking Veteran David Hannigan to Run OTC Desk

July 19, 2018 |

trade.Io Appoints Banking Veteran David Hannigan to Run OTC Desk

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Wednesday Lugano, Switzerland – trade.io, a leading cryptocurrency exchange and innovator of the industry’s leading liquidity pool, today announced that David Hannigan has joined the company as its Chief Dealer. David brings almost 30 years of trading and risk management experience, most notably his position as Senior VP at National Australia Bank, to his new role.

David will lead trade.io’s risk management department, and will be responsible for building out its OTC Desk, allowing for both retail and institutional fiat-to-crypto exchange functionality. Up to 50% of all OTC Desk revenues will be allocated to the forthcoming liquidity pool, which can only be accessed by using trade.io’s utility token, TIO.

trade.io’s CEO Jim Preissler said, “We’re very lucky to have someone with David’s experience lead the risk management team and spearhead our OTC Desk. David has an impeccable track record in trading and risk management, which is invaluable when dealing with the size of deals in the crypto space. It’s not uncommon to have a $ 10m deal come through the desk multiple times per day.”

David Hannigan also commented, “I see a lot of similarities in how trade.io runs its business to many of the large banks I’ve worked for in the past. With my prior experience in the banking sector, I am cognizant on how profitable an OTC Desk can be. I am thrilled to hit the ground running to provide this service to the trade.io community.”

David will also be providing daily commentary on the crypto markets which can be accessed by registered trade.io users.

About trade.io
trade.io is a next-generation financial institution based on blockchain technology, providing the ultimate in security and transparency. By leveraging decades of experience in the investment banking, trading & FinTech sectors, and combining them with the power and transparency of the distributed ledger, trade.io has created a truly unique exchange that will revolutionize asset trading and investment banking.

Press Contact Email Address
marilia.kountouridou@trade.io

Supporting Link
https://exchange.trade.io/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Switzerland Considers Granting Crypto Businesses Access to Banking Services

July 6, 2018 |

Switzerland Considers Granting Crypto Businesses Access to Banking Services

Crypto companies based in Switzerland may receive access to regular banking services as early as this year. Political will and economic wisdom seem to be in place as some government officials and bankers are already working to resolve a serious issue. Swiss banks have been refusing accounts to firms from the growing crypto industry.

Also read: Swiss Crypto Company Acquires License to Distribute Funds to Investors

Banks Expected to Offer Services by the End of the Year

Switzerland Considers Granting Crypto Businesses Access to Banking ServicesIn terms of crypto development, Switzerland is now standing at a crossroad. With very few exceptions, most of its banks have been refusing banking services to a growing number of startups residing in the country’s Crypto Valley and this is beginning to suffocate growth in the fintech sector.

Luckily, far-sighted policy makers and seasoned financiers have already pulled their sleeves up and are working to break the deadlock. One of them is Heinz Tännler, the finance director of the canton of Zug, home of the Swiss Crypto Valley. Speaking to the Financial Times, Tännler said he expected Swiss politicians and regulators to remove the obstacles in the coming months, which would allow crypto companies based in the country to operate with banks just like any other business. He added:

We hope to clarify relationships by the end of the year at the latest. Time is pressing – other jurisdictions such as Malta and Singapore are very active and making a lot of effort to attract these companies. The lack of access to bank services is a significant competitive disadvantage.

According to Mr. Tännler, the country’s central bank, financial supervisor and federal government “are willing to help.” He also stressed that “We have to push certain national institutions to resolve this problem quickly and effectively, but that now seems to be going well.”

Traditional financial institutions are increasingly under pressure to offer crypto startups regular services like bank accounts. According to Swissinfo, the bottleneck has become acute since the ICO craze brought $ 1.46 billion to Switzerland last year. A recent report by the Crypto Valley Association revealed that token sales through May this year have attracted nearly double the funds raised in 2017.

Mounting Pressure to Break the Deadlock

Switzerland Considers Granting Crypto Businesses Access to Banking ServicesRepresentatives of the industry have warned that if crypto businesses are not provided with access to banking services they may start looking for better conditions elsewhere.

“Starving startups of bank accounts is akin to killing the goose that laid the golden egg,” said blockchain and cryptocurrency expert Guido Schmitz-Krummacher, former director of the Tezos foundation and advisor to projects like Cardano. He believes that the failure to provide a reliable environment for startups will harm the reputation of the Crypto Valley in Zug.

“I am already seeing projects choose Singapore, Malta and Gibraltar because they can’t get a bank account in Switzerland. They will be followed by projects already established in Switzerland unless the banks and politicians address this topic.” The lack of access to normal banking services is worrying, according to Alain Kunz, chief executive of Coinlab Capital, a startup offering blockchain asset management services. “You can do a lot with crypto but you can’t pay rents and salaries,” he told the FT.

Switzerland Considers Granting Crypto Businesses Access to Banking Services

Some Swiss politicians and bankers have already heard these worries. In January, economy minister Johann Schneider-Ammann shared a vision of Switzerland becoming a “Crypto Nation.” His colleague, finance minister Ueli Maurer went a step further by forming a working group with representatives of the Swiss Bankers Association (SBA), the financial regulator and the central bank in an attempt to find a solution. The SBA has also set up a taskforce and is planning to establish a set of standards for ICO startups in order to simplify the process of opening bank accounts.

“Both we as an association and the banks have an interest in business relations in this growth area. Banks see the potential that the blockchain technology offers for their industry and Switzerland as a financial and technology hub,” the SBA said in a written statement quoted by Swissinfo. Welcoming its actions, the Crypto Valley Association (CVA) said it anticipated “a progressive broadening of offerings by a number of Swiss banks.”

Switzerland Considers Granting Crypto Businesses Access to Banking ServicesVery few legacy institutions in Switzerland have so far declared readiness to offer services to the 200 Zug-based blockchain and crypto firms. Among them are Neuchâtel Cantonal Bank and Neue Helvetische Bank. They were joined recently by Hypothekarbank Lenzburg, which announced this month it was accepting cryptocurrency related businesses as account holders. In the meantime, some Swiss startups have opened bank accounts in neighboring Liechtenstein using the services of local banks such as Frick and Alpinum. Others have decided to enter the sector of traditional financial services through partnerships.

Do you expect Swiss banks to offer crypto companies unrestricted access to banking services? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

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Polish Bitcoin Association Seeks Protection from Alleged Banking Embargo

June 29, 2018 |

Polish BTC Association Seeks Protection From Alleged Banking Embargo

The Polish Bitcoin Association has reportedly appealed to Poland’s Office of Competition and Consumer Protection (OCCP) to protect the country’s cryptocurrency sector from what it perceives as a growing embargo targeting virtual currency businesses on the part of Polish financial institutions.

Also Read: The 2018 Crypto-Bear Market Less Severe Than 2014, At Least for Now

Polish Bitcoin Association Files Complaint with OCCP Against 15 Banks

Polish BTC Association Seeks Protection From Alleged Banking EmbargoThe Polish Bitcoin Association has accused a number of the country’s banks of seeking to restrict competition through refusing to provide financial services to cryptocurrency companies. The association recently filed a complaint with the OCCP requesting that the regulator launch an investigation into the alleged banking embargo, and impose penalties where appropriate..

The Polish Bitcoin Association’s complaint accuses “15 financial institutions” of refusing to provide bank accounts to 52 entities in the country’s nascent cryptocurrency sector, adding that said banks have also unfairly closed the accounts of a further 25 entities. The complaint describes mBank as having the most “disgraceful” record among Poland’s banks, alleging that the it has “made 9 refusals and closed 3 accounts.”

According to a rough translation of the complaint, “the effects of the banks’ actions described clearly aim at removing virtual currency entities from the market, despite the fact that such activities are legal and conducted with dignity. In view of the above, action by the regulators is necessary, and this notice and its requests are fully substantiated.”

No Polish Regulations Prohibit Cryptocurrency Trading

Polish BTC Association Seeks Protection From Alleged Banking EmbargoThe Polish Bitcoin Association asserts that the alleged restriction of financial services to cryptocurrency companies has occurred without a legislative mandate, emphasizing that there is no prohibitive regulatory regime concerning the exchange of cryptocurrencies.

Earlier this month, the Polish Financial Oversight Commission published a document seeking to clarify the legal status of cryptocurrency in the country, in which the watchdog stated that there are “no regulations prohibiting [the] trading […] of cryptocurrencies. The release also expressed the Polish Financial Oversight Commission’s intention to develop and introduce a regulatory apparatus pertaining to bitcoin and alternative cryptocurrencies during July.

Earlier this week, a survey conducted by Ipsos for ING found that Polish citizens are among the most virtual currency-savvy in Europe – with 77% of respondents expressing familiarity with cryptocurrency. The survey found only one European nation to produce a higher percentage of respondents that had heard of cryptocurrency, with 79% of Austrians found the have been familiar with virtual currency.

Do you think that Poland will adopt a permissive or prohibitive regulatory apparatus with regards to cryptocurrencies? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


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Bitcoin Businesses Denied Banking Services in Ireland

June 21, 2018 |

Bitcoin Businesses Denied Banking Services in Ireland

Leading companies from the crypto sector in Ireland have complained they are being denied services by some of the country’s major financial institutions. Among the affected businesses are bitcoin exchange Bitcove, winner of the bank-sponsored “Best Business Startup” award, and Ireland’s “longest running” bitcoin broker, Eircoin.  

Also read: Swiss Crypto Company Acquires License to Distribute Funds to Investors

Banks Close Accounts of Award-Winning Startup

Several Irish businesses have been forced to either stop trading cryptocurrencies or seek partners abroad after local financial institutions refused to offer them banking services. Some of them have lost their bank accounts, while others have never been allowed to open one in the country, the local press reported.

Bitcoin Businesses Denied Banking Services in Ireland

Bitcoin exchange Bitcove, which has been operating since 2014 and had previously worked with Allied Irish Banks (AIB), Permanent TSB and Bank of Ireland, is one of the affected companies, The Irish Times reported. One of its co-founders, Peter Nagle, told the newspaper the banks closed its accounts stating they do not support companies offering cryptocurrency exchange facilities. The trading platform has since been using the services of “a more progressive banking partner” in Europe.

“Particularly disappointing was Bank of Ireland. We were participants on the Ignite startup program, which is backed by the bank. Our business and its progress were reviewed monthly by a panel which included Bank of Ireland representatives. At the end of the incubator Bitcove won the award, but then just a few months later our accounts were frozen and eventually closed,” Nagle explained.

One of Ireland’s First Bitcoin Brokers Also Hit

Bitcoin Businesses Denied Banking Services in IrelandAnother crypto firm that has suffered from the clampdown is Eircoin, one of Ireland’s oldest bitcoin brokers, which closed a couple of months ago. An affiliated consulting business was also refused banking services. “We are being shuttered due to a negligent and defensive banking system,” Eircoin’s cofounder Dave Fleming said, quoted by the Irish daily. He added that his company, along with other cryptocurrency sellers, had previously consulted with the Central Bank of Ireland which told them that as long as they were abiding by the regulations their operations were in line with the law.

Bank of Ireland, one of the four largest Irish commercial banks, admitted in a statement it was not providing banking services to virtual currency exchange platforms, but noted that its customers were not prevented from transacting cryptocurrency. AIB Group, another “Big Four” bank, denied it was refusing services to companies from the crypto sector. A spokesman was quoted as saying, “We don’t discriminate in relation to providing banking services to cryptocurrency companies nor have we been systematically exiting such companies.” According to the official, some of these businesses are unable to comply with the anti-money laundering and know your customer requirements that the bank is obliged to adhere to.

Bitcoin Businesses Denied Banking Services in IrelandThe Banking and Payments Federation of Ireland (BPFI) stated that it wasn’t aware of any policy to close accounts of companies trading cryptocurrencies. However, the organization presenting 70 traditional financial institutions noted that Irish lenders are expected to take measures to minimize the risk of facilitating “financial crimes which are enabled by cryptocurrencies,” such as money laundering and terrorism financing.

Sharp Contrast

The negative attitude of the legacy financial institutions towards crypto businesses sharply contrasts with the view of Ireland as a crypto-friendly jurisdiction in general. Recently, it was reported that a new government-backed platform will promote the country as a hub for developers of applications based on the technology behind cryptocurrencies. Blockchain Ireland was launched by the Irish Blockchain Expert Group in partnership with a young company called Consensys. The initiative is supported by Enterprise Ireland, the Department of Finance, members of the industry and representatives of academic institutions. The agency promoting foreign investment in the country, IDA Ireland, has also backed blockchain and crypto projects.

Bitcoin Businesses Denied Banking Services in Ireland

Cryptocurrencies and the related economic activities received another recognition by authorities in Dublin with the decision of the Irish revenue service to issue guidelines on the taxation of crypto transactions. The new “Tax and Duty Manual” clarifies related matters and confirms that in most cases the existing tax regulations apply to the crypto sector. According to the advisory, crypto incomes and profits are subject to direct taxes such as corporate tax, income tax, and capital gains tax. Officials have also stated that for VAT purposes bitcoin constitutes a currency. The Irish tax agency regards cryptocurrencies as “negotiable instruments” and exempts them from the value added tax.

Do you think the bank clampdown on crypto businesses in Ireland is temporary? Share your thoughts on the subject in the comments section below. 


Images courtesy of Shutterstock, Bitcove, Eircoin, BPFI.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

The post Bitcoin Businesses Denied Banking Services in Ireland appeared first on Bitcoin News.

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Robinhood Reportedly Considering Formal Banking Services

June 21, 2018 |

Robinhood Reportedly Considering Formal Banking Services

Unnamed sources suggest popular free crypto and stock trading application (app), Robinhood, is negotiating with US regulators about prospects for it becoming a bank, complete with traditional services such as savings accounts. It’s still early going, and very preliminary, but such an arrangement could well be the future of banking.

Also read: Bitcoin More Influential in US Politics Than Ever

Robinhood Looking to Provide Banking Services

By all accounts it has been a skyrocketing year for the smartphone trading app Robinhood Markets, Inc. out of Menlo Park, California. Success appears to have emboldened the scrappy firm, according to Bloomberg.Robinhood Reportedly Considering Formal Banking Services

In late January, the company announced it would add bitcoin core (BTC) and ether to their platform, which caused 1 million people to sign up. Only a month after its formal February crypto rollout, by March it boasted a cool $ 5.6 billion valuation after three years of operation. And mid-May saw its services grow from one or two US states to ten.  

Unnamed sources are pointing to the popular free crypto trading app as querying regulators about the possibility of it becoming a full-fledged bank. The company has proven its ability to grow a consumer base, reaching more than 4 million in the United States. That it might be able to offer savings accounts could signal a broader change in the legacy industry, one gearing itself toward the next, more tech savvy, generation.

Banking laws in the US effectively prevent Robinhood from going forward on its own in this regard. Bloomberg insists the company is “in early discussions with regulators to begin offering banking-like products through different licenses or partnerships.” Discussions are between it and “the Office of the Comptroller of the Currency, which charters and regulates all national banks and federal savings associations.”

Robinhood Reportedly Considering Formal Banking Services

Everyone associated with the matter was careful to stress how nothing concrete has been decided. Still, should things progress, most expect the company would partner up with an existing institution, rather than go it alone. Whatever the case, other startups have moved along similar lines with an eye toward poaching dissatisfied traditional banking customers tired of unfavorable interest rates, a friction filled online experience, and the want to have most/all of their financial dealings in one convenient application.

Is banking a good move for Robinhood? Let us know in the comments. 


Images via the Pixabay, Robinhood.


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North Carolina Banking Bill Passes — Adds Virtual Currency License Requirements

June 20, 2018 |

North Carolina Banking Bill Passes — Adds Virtual Currency License Requirements

The state of North Carolina has pushed the passage of House Bill 86 and some digital currency advocates and firms like Coinbase believe the bill makes the state more friendly towards cryptocurrency businesses. At the moment North Carolina’s House Bill 86 has been presented to Governor Roy Cooper and awaits his signature.

Also read: Major Korean Crypto Exchange: $ 31 Million Vanishes

North Carolina House Bill 86 Includes Money Transmission Changes and Licensure Guidelines in Regard to Virtual Currencies Passes Unanimously

North Carolina Banking Bill Passes — Adds Virtual Currency License Requirements On June 14, 2018, North Carolina’s general assembly unanimously ratified House Bill 86 which adds new language to the state’s permissible investments and statutory trust under the Money Transmitters Act. The bill’s final revision includes legal definitions concerning virtual currencies like bitcoin and other tokens. North Carolina’s legislation also requires the licensure of businesses that work with cryptocurrency activities. Furthermore, the state’s Commissioner of Banks Ray Grace can request data from the licensed cryptocurrency firm at any time. North Carolina House Bill 86 states:   

If the licensee possesses virtual currency as permissible investments under this Article, the Commissioner may at any time request that the licensee verify, in a manner acceptable to the Commissioner, aggregate virtual currency transmission obligations outstanding and virtual currency held as permissible investments, including virtual currency stored offline.

Coinbase Believes North Carolina’s Bill ‘Helps Cryptocurrency Companies Comply With the Letter of the Law’

North Carolina Banking Bill Passes — Adds Virtual Currency License Requirements
Coinbase executive Mike Lempres

Commissioner Grace had also helped write the revised edition which included virtual currency definitions and licensee requirements. The firm Coinbase applauded the passage of House Bill 86 and formally thanked the banking commissioner, representatives Tim Moore, Dan Bishop, Jon Hardister, Bill Rabon, Stephen Ross, Jason Saine, and Jeff Tarte for helping bolster the legislation.

“Passage of House Bill 86 exemplifies how regulators and legislators can work together to foster innovation by either licensing cryptocurrency money transmissions or exempting cryptocurrency from money transmission laws,” the Chief Legal and Compliance Officer at Coinbase, Mike Lempres said last Thursday.

By helping cryptocurrency companies comply with the letter of the law, leaders in both states are paving the way for the economic and social benefits of this new technology to flourish within their communities.           

The firm also complimented the state of Wyoming for recently passing its blockchain and cryptocurrency legislation after it had issues with the state prior to the passage of Wyoming’s guidelines. A while ago Coinbase suspended its services to Wyoming residents and the firm said at the time that the state’s Division of Banking made Coinbase operations impractical. As both North Carolina and Wyoming change their money transmissions laws the state’s look like they may see more business operations due to the legislative changes.

What do you think about North Carolina’s House Bill 86? Do you think more states will adapt virtual currencies into their laws? Or do you think these regulations are bad for cryptocurrencies in general? Let us know your thoughts in the comment section below.


Images via Pixabay, Wiki Commons, North Carolina Emblem, Coinbase, and Medium. 


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The post North Carolina Banking Bill Passes — Adds Virtual Currency License Requirements appeared first on Bitcoin News.

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Regulator to face questions over unauthorized accounts in banking industry

June 13, 2018 |

The nation’s top bank regulator has found evidence that institutions other than Wells Fargo & Co. may have created accounts without customers’ authorization — and a prominent Democrat wants the regulator to name names.

Ohio Sen. Sherrod Brown, the ranking Democrat on the Senate banking committee,…


L.A. Times – Business

Crypto Exchange Buda Subject of Sudden Banking Embargo in Colombia

June 13, 2018 |

Crypto Exchange Buda Subject of Sudden Banking Embargo in Colombia

Major Latin American bitcoin exchange, Buda, recently suddenly become the subject of a banking embargo in Colombia, according to local reports. Buda similarly experienced the termination of its Chilean banking services in March of this year.

Also Read: Six Major Banks in Chile Sued by Another Cryptocurrency Exchange

Buda Suffers Termination of Banking Services in Colombia

Crypto Exchange Buda Subject of Sudden Banking Embargo in ColombiaBuda, a Latin American bitcoin exchange formerly known as Surbtc servicing the Argentinian, Chilean, Colombian, and Peruvian markets, suddenly became the subject of a financial blockade from Colombian banking institutions. The sudden termination of the exchange’s Colombian bank accounts has disrupted customer withdrawals, which are expected to be processed as normal from June 13th onward.

The CEO of Buda, Alejandro Beltran, confirmed that Bancolombia, Davivienda, and BBVA have all terminated financial services provided to the exchange via an email sent to customers. Buda also sought to assure customers that despite their funds are safely protected despite the disruptions to exchange’s operations.

No Other Exchanges Appear to Have Been Targeted

Crypto Exchange Buda Subject of Sudden Banking Embargo in ColombiaLocal reports have attributed embargo to a warning issued by the Superintendence in February that encouraged banks to avoid having ties to Buda.com. The embargo does not target other Columbian exchanges, with local media reporting that “other local crypto exchanges remain open and unimpeded,” as neither Panda Exchange nor Bitinka has reported terminations of banking services.

The financial embargo against Buda has come at a time of increasing parliamentary dialogue regarding cryptocurrencies in Colombia.

During a recent debate in the Colombian Senate attended by representatives of the country’s Financial Superintendency, Bank of the Republic, and National Banking Association, Senator Antonio Navarro Wolff asserted that “the State assumed the task of warning about the risks of operations with cryptocurrencies but did not take actions to prevent or hinder these operations.”

“It is necessary to advance the issue of cryptocurrency, to be at the level of the countries that use this technology,” Senator Wolff added.

Buda Faces Banking Hurdles in Chile

Crypto Exchange Buda Subject of Sudden Banking Embargo in ColombiaIn March, Buda, alongside cryptocurrency exchanges Cryptomarket, and Orionx, became the subject of an aggressive banking embargo from Chile’s seven major financial institutions, including state-owned bank, Banco del Estado de Chile.

Buda filed a lawsuit with Chile’s Court for the Defense of Free Competition, leading to the court ordering Banco del Estado de Chile, Scotiabank, and Itau Corpbanca to reopen the accounts of Buda and Cryptomkt. Banco del Estado de Chile has confirmed that it will comply with the court’s wishes, however, neither Scotiabank or Tiau have indicated that their intention to reopen the exchanges’ accounts.

Do you think that Buda will be driven from the Colombian markets? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Buda


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The post Crypto Exchange Buda Subject of Sudden Banking Embargo in Colombia appeared first on Bitcoin News.

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Indian Crypto Exchanges Engage with RBI to Offer Banking Ban Alternatives

June 7, 2018 |

Indian Crypto Exchanges Engage with RBI to Offer Banking Ban Alternatives

Indian cryptocurrency exchanges have followed the Supreme Court’s suggestion for them to present their cases to the Reserve Bank of India. They have sent letters to the central bank, offering alternatives to the RBI’s banking ban.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Supreme Court’s Suggestion

Cryptocurrency exchanges in India have reportedly sent their pleas to the Reserve Bank of India (RBI) as directed by the Supreme Court’s ruling last month.

Indian Crypto Exchanges Engage with RBI to Offer Banking Ban Alternatives
Indian Supreme Court.

The central bank mandated in April that all financial institutions under its control must stop servicing cryptocurrency exchanges and other crypto-related businesses within three months. Some crypto exchanges subsequently took the RBI to court; their writ petitions were passed to the Supreme Court.

The country’s top court decided to hear all the petitions against the RBI ban on July 20 and ordered concerned parties to engage with the central bank to consider their requests. The Supreme Court “allowed cryptocurrency exchanges, their shareholders, traders and other individuals to present their cases within two weeks to the RBI, which will look into the issue in accordance with the law,” as news.Bitcoin.com previously reported. Quartz elaborated:

The supreme court suggested that these exchanges can engage with the RBI. So, last week, a clutch of such firms sent out letters making their case against the banking regulator’s prohibitory order.

Crypto Firms’ Requests

Indian Crypto Exchanges Engage with RBI to Offer Banking Ban AlternativesVarious suggestions were presented to the RBI. According to the news outlet, some of “the bitcoin exchanges have requested the RBI to remove the blanket ban, saying the regulator should instead enforce it only on firms violating the norms.”

A petitioner explained to the publication, “we have also suggested measures that we are ready to take to improve the KYC-AML [Know Your Customer – Anti-Money Laundering] norms, such as including passport details as well. We are also ready to take any suggestion that the regulator has to offer that can address their concerns.”

Anirudh Rastogi, TRA Law’s managing partner who filed the supreme court petition representing four exchanges, told the news outlet:

A ban is counter-productive, therefore, we have suggested that there should be appropriate regulations that can address the government or the central bank’s concerns.

“Other firms have asked for an extension on the deadline,” the publication wrote, adding that it has reviewed an application submitted by Kali Digital Eco-systems Private Limited to the RBI. The document states that “considering the next date of the hearing in the supreme court is after July 06, 2018,” the firm requests the central bank “to extend the time of three months granted in the captioned circular to at least Aug. 31, 2018.”

Coping with RBI Ban

Five writ petitions have been filed, as news.Bitcoin.com previously reported. Last month, the Supreme Court mandated that no other courts shall accept any more crypto-related petitions and all existing ones were transferred to the Supreme Court.

Indian Crypto Exchanges Engage with RBI to Offer Banking Ban AlternativesIn anticipation of the RBI order taking effect, crypto exchanges in the country are increasingly moving away from fiat, creating crypto-to-crypto trading platforms. Unocoin launched a new trading platform with 15 cryptocurrencies last week. Zebpay and Koinex have both launched crypto-to-crypto exchanges.

Currently, the Indian government is working on the regulatory framework for cryptocurrencies. It has set up a committee under Subhash Garg, the secretary of economic affairs in the finance ministry, to prepare a draft crypto law.

Do you think the RBI will reconsider the ban and accommodate the requests of crypto exchanges? Let us know in the comments section below.


Images courtesy of Shutterstock.


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