Crypto Exchanges Want Banks to Lift Investment Hurdle

Multiple cryptocurrency exchanges have reached out to top private banks, including HDFC Bank and ICICI Bank, to allow their account holders to use their accounts to buy crypto assets, following the recent announcement in the budget on the taxation of virtual digital assets.

At present, most account holders of private banks are unable to directly buy crypto assets through their bank accounts or credit cards. They transfer money to exchanges through a few select banks, UPI or MobiKwik wallet.

“We are in conversation with top banks about creating an investor-friendly environment which will enable our users to deploy formal banking channels for their crypto investments. After the recent announcement in the budget on taxation, we think that India is gradually moving towards a situation where virtual digital assets could be accepted,” said Shivam Thakral, CEO of BuyUcoin, a home-grown cryptocurrency exchange.

Smaller banks, however, have been supporting the exchanges for some time now. For example, the WazirX app shows bank support of Catholic Syrian Bank, Deutsche Bank, Dhanlaxmi Bank, Federal Bank, IDFC Bank, Lakshmi Vilas Bank, Karur Vysya Bank and Tamilnad Mercantile Bank, among others.

Another crypto exchange CEO, Sathvik Viswanath of Unocoin, said that banks may consider this (tax on crypto assets) to be another step towards the legalization and regulation of cryptocurrencies, there increasing the chances of the industry getting better services from the banks.

“We hope that more banks open their doors for crypto companies than the handful of them that serve at present,” he said.

Last year, top banks stopped offering services to investors who wanted to buy cryptocurrencies.

Many large banks have even discontinued corporate bank accounts operated by exchanges. S-ET

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