Does that mean that the exchanges operating in India will be shut down because the banks comes under RBI and if they cannot get the help of the banking system, how people are able to trade and move money, it is a highly unfortunate situation and i am hoping they will change their stance when the major economies come to a standard regulation.
This is pretty unfortunate to say the least on the part of crypto enthusiasts. Menawhile, RBI has regulated the banks which comes under its ambit however nothing has been said by Fin Min/ Min. of Commerce/ corporate affairs regarding the status of crypto exchanges. This not only affects the investments made into them by investors but also jeopardize the decision of RBI to regulate the banks.
If at all they intend to regulate cryptos, they must draft a clear policy covering all the stakeholders and not just banks. Currently, its not legal and not illegal either. This stance is never good for any sector. May be inside they admit crypto is a force to be reckoned but lacks the willingness/ resources to accept it.