Banks are repotedly softening their stance on crypto trading

[pakhitheboss]

I read this article yesterday and thought of sharing it with you guys. Would love to hear your thoughts about this article. I am starting with the three things that they have highlighted in the beginning of this article.

1. Crypto investors in India may be able to use net banking and debit cards to buy cryptocurrencies again.
2. Banks in India had withdrawn services from crypto exchanges earlier this year, after an informal warning from the Reserve Bank of India (RBI).
3. According to a report by the Economic Times, most customers switched over to using UPI to buy crypto — a channel that falls outside the purview of banks.

1. The first point according to me is speculation unless the banks allow the use of debit cards I will not believe it.
2. The second part is correct after RBI's intervention private banks are no more threatening the crypto community with the closure of bank account letters.
3. The last one was an eye-opener for me I was not aware that UPI does not fall under the jurisdiction of RBI and that is why most Indian exchanges are promoting UPI payments. In a way UPI it is far better than the traditional transaction system.


You can read the complete article here.

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[amishmanish]

That article is based on just one fact that WazirX has added some banks as a payment option. There is nothing much to read into it as exchanges like coinDCX and WazirX have been allowing this for quite some time.

Regulatory clarity is still missing as the crypto bill is still under deliberation. I wouldn't read too much into this except the fact that this article is a perfect example of Indian media's dishonesty and casual attitude. The person who wrote that knows no better than anybody else and is probably just a low paid normie. There is a speculatory comment about banks allowing transactions amid rising popularity in Tier II and Tier III towns.

Instead of going into the actual details about how these Tier II town crypto peddlers are basically scammers running HYIP and Ponzi scheme, the writer is content to note that this implies popularity. Nothing can be farther from the truth. As @teosanru pointed out in this post, a lot of these are crypto scammers once again vying for blood in a country full of greedy people willing to part with their, probably ill-gotten wealth, in the hope of scamming the person below them. Its the MCAP and Pankaj Bhardwaj level scammers all over again.

[pakhitheboss]

That article is based on just one fact that WazirX has added some banks as a payment option. There is nothing much to read into it as exchanges like coinDCX and WazirX have been allowing this for quite some time.

Regulatory clarity is still missing as the crypto bill is still under deliberation. I wouldn't read too much into this except the fact that this article is a perfect example of Indian media's dishonesty and casual attitude. The person who wrote that knows no better than anybody else and is probably just a low paid normie. There is a speculatory comment about banks allowing transactions amid rising popularity in Tier II and Tier III towns.

Instead of going into the actual details about how these Tier II town crypto peddlers are basically scammers running HYIP and Ponzi scheme, the writer is content to note that this implies popularity. Nothing can be farther from the truth. As @teosanru pointed out in this post, a lot of these are crypto scammers once again vying for blood in a country full of greedy people willing to part with their, probably ill-gotten wealth, in the hope of scamming the person below them. Its the MCAP and Pankaj Bhardwaj level scammers all over again.

For the past 24 hours, some foreign and Indian media outlets are publishing news that can bring joy to the Indian crypto community. I am not sure about the authenticity of this news. But, what they are writing is what we as the Indian community has been asking from the government for a long time now.

Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per use case — payments, investment or utility.

Do you think this will happen? do share some thoughts.

[UKprod]

Few of the things in the OP are a little incorrect. Regarding the point of RBI warning the banks, it has also issued a clarification that crypto is not banned in India. And by virtue of the Supreme Court order in March 2020, the RBI circular which was issued earlier was withdrawn. Accordingly, the banks are also softening their stance on crypto trading.

You can read more on the development of crypto legality in India here: https://bitcointalk.org/index.php?topic=5339221.msg57065554#msg57065554

[teosanru]

That article is based on just one fact that WazirX has added some banks as a payment option. There is nothing much to read into it as exchanges like coinDCX and WazirX have been allowing this for quite some time.

Regulatory clarity is still missing as the crypto bill is still under deliberation. I wouldn't read too much into this except the fact that this article is a perfect example of Indian media's dishonesty and casual attitude. The person who wrote that knows no better than anybody else and is probably just a low paid normie. There is a speculatory comment about banks allowing transactions amid rising popularity in Tier II and Tier III towns.

Instead of going into the actual details about how these Tier II town crypto peddlers are basically scammers running HYIP and Ponzi scheme, the writer is content to note that this implies popularity. Nothing can be farther from the truth. As @teosanru pointed out in this post, a lot of these are crypto scammers once again vying for blood in a country full of greedy people willing to part with their, probably ill-gotten wealth, in the hope of scamming the person below them. Its the MCAP and Pankaj Bhardwaj level scammers all over again.

For the past 24 hours, some foreign and Indian media outlets are publishing news that can bring joy to the Indian crypto community. I am not sure about the authenticity of this news. But, what they are writing is what we as the Indian community has been asking from the government for a long time now.

Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per use case — payments, investment or utility.

Do you think this will happen? do share some thoughts.

Indian media houses are nothing less than daily soaps, they have been giving news about bitcoin ban from their so-called official sources for more than 3 years now, but there hasn't been a single bill presented in parliament regarding this, in previous budget session we saw some advancement on the bill but it did not see the light of the parliament because the government thought there is still a lot of work to be done on it. Now after all these years these media houses are giving news about cryptocurrencies being legal or the government softening their stance, I would believe in any such news only when any spokesperson of the Indian government does an open press conference on this matter or unless a law is passed in the parliament otherwise all of these things are nothing but rumours.

[pakhitheboss]

That article is based on just one fact that WazirX has added some banks as a payment option. There is nothing much to read into it as exchanges like coinDCX and WazirX have been allowing this for quite some time.

Regulatory clarity is still missing as the crypto bill is still under deliberation. I wouldn't read too much into this except the fact that this article is a perfect example of Indian media's dishonesty and casual attitude. The person who wrote that knows no better than anybody else and is probably just a low paid normie. There is a speculatory comment about banks allowing transactions amid rising popularity in Tier II and Tier III towns.

Instead of going into the actual details about how these Tier II town crypto peddlers are basically scammers running HYIP and Ponzi scheme, the writer is content to note that this implies popularity. Nothing can be farther from the truth. As @teosanru pointed out in this post, a lot of these are crypto scammers once again vying for blood in a country full of greedy people willing to part with their, probably ill-gotten wealth, in the hope of scamming the person below them. Its the MCAP and Pankaj Bhardwaj level scammers all over again.

For the past 24 hours, some foreign and Indian media outlets are publishing news that can bring joy to the Indian crypto community. I am not sure about the authenticity of this news. But, what they are writing is what we as the Indian community has been asking from the government for a long time now.

Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per use case — payments, investment or utility.

Do you think this will happen? do share some thoughts.

Indian media houses are nothing less than daily soaps, they have been giving news about bitcoin ban from their so-called official sources for more than 3 years now, but there hasn't been a single bill presented in parliament regarding this, in previous budget session we saw some advancement on the bill but it did not see the light of the parliament because the government thought there is still a lot of work to be done on it. Now after all these years these media houses are giving news about cryptocurrencies being legal or the government softening their stance, I would believe in any such news only when any spokesperson of the Indian government does an open press conference on this matter or unless a law is passed in the parliament otherwise all of these things are nothing but rumours.

Absolutely correct!

But, let me first quote this part of your reply

so-called official sources 

[/B]

I personally want to meet all of these official sources. I just do not understand why can't they rely on actual facts rather they always try to create articles that fall under clickbait. The fact is nothing of this sort is going to happen unless the present government starts discussing cryptocurrency in the parliament. I think which is highly unlikely to happen this year.

[avikz]

I don't know what triggered that sudden change in stance of Indian banks, but I don't think there is any solid discussion happening at bank's level to allow cryptocurrency purchase through their channel. Indian banks are anyways in a very bad shape. Now if cryptos are allowed in India, that might worsen their situation. People are not investing in banks because of the lowest interest rate, that money is channelled to stock market and if banks start supporting crypto companies, a good chunk of that investment will further move out from them. But if it finally happens, good for those people interested in cryptos.

[pakhitheboss]

I don't know what triggered that sudden change in stance of Indian banks, but I don't think there is any solid discussion happening at bank's level to allow cryptocurrency purchase through their channel. Indian banks are anyways in a very bad shape. Now if cryptos are allowed in India, that might worsen their situation. People are not investing in banks because of the lowest interest rate, that money is channelled to stock market and if banks start supporting crypto companies, a good chunk of that investment will further move out from them. But if it finally happens, good for those people interested in cryptos.

Still, banks do earn when one of their clients invest in the stock market or mutual funds using their platform. Whereas the only way banks might make money from the crypto market is by charging their client a service fee. I am sure they will be adding weird service charges in the future. They always make money from their customer and not for their customers.

[pawanjain]

3. The last one was an eye-opener for me I was not aware that UPI does not fall under the jurisdiction of RBI and that is why most Indian exchanges are promoting UPI payments. In a way UPI it is far better than the traditional transaction system.

Yes, I came to know about this when gpay initially started the UPI payments. Many of my friends started using gpay for how easy and convenient it was to make transactions but everything has a downside.
Few friends of mine had some transactions which didn't get processed and upon complaining in the banks for deducting money they said that UPI payments does not come under their regulation.
All the banks completely deny any help for UPI payments.

So yeah this has become a great way for crypto startups to give a payment gateway to their customers to buy/sell crypto but then again we must know that any failed transactions will get us in a dilemma as no help will be provided from the banks.

[amishmanish]

For the past 24 hours, some foreign and Indian media outlets are publishing news that can bring joy to the Indian crypto community. I am not sure about the authenticity of this news. But, what they are writing is what we as the Indian community has been asking from the government for a long time now.

Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per use case — payments, investment or utility.

Do you think this will happen? do share some thoughts.

The whole thing depends on how they end up defining "private" crypto. The recent increase in funding and advertisement by exchanges like CoinDCX has indeed led to a general awareness and adoption amongst people. So the government may want to take a politically correct stance by not nipping in the bud something that is earning money and jobs for a lot of people. Polygon co-founder Sandip became the first crypto billionaire in India. That kind of story gets the masses going and ready to support a project.

In the best scenario, the govt will refrain from any bans but come up with regulations as to where you can trade and where you cannot. That will save a lot of pain coming from the MLM seminar scams. At a time when jobs and employment is turning into an important issue, the government will have probably read the mood of the youngsters. So, I am positive. My actual comment was on this third class media failing to do its duty in helping protect the people through correct, researched information. Sadly, expectations can't be any higher when a publication like "The Hindu" allowed full page advertisements from the scammer Pankaj Bhardwaj during the 2017 run.