Cryptocurrency bank Cashaa set to foray into Indian market
Cashaa, the UK -based next-generation cryptocurrency banking platform, will start its operations in India from August.
Following the banking woes faced by cryptocurrency exchanges in India, Cashaa, the UK -based next-generation banking platform, will start its operations in India from next month in August. The cypto bank will help in Peer-to-Peer trading between the crypto traders . Currently, in the absence of banking services, many exchanges also offer peer-to-peer channels where the transaction occurs directly between two parties. In P2P trading, the exchange work as a custodian. The seller has to deposit crypto with the exchange and once payment confirmation is received from the seller, the crypto is released by the exchange in the buyer’s account.
“We will be coming to India next month. We will be launching personal bank accounts so that personal traders can do Peer to Peer trading. Cryptocurrency traders will be able to transact without fear of their bank accounts being frozen,” Kumar Gaurav, CEO, and Founder, Cashaa was quoted as saying in Business Line.
The operation will first start from New Delhi, Gujarat and Rajasthan. The next phase will cover Maharashtra, Uttar Pradesh and West Bengal.
Cashaa has joined hands with United Multistate Cooperative Society, a credit cooperative society. The joint venture allows users to transact in cryptocurrency and fiat from one account. The beta platform has over 200 crypto businesses, including CoinDCX and Unocoin.
Cashaa will also offer debit cards and loans against cryptocurrencies. The platform will also offer loans for buying cryptocurrencies.
Banking woes
The Reserve Bank of India (RBI) issued a clarification on May 31st, 2021, that banks have to adhere to last year’s Supreme Court cryptocurrency judgment, which lifted the ban on banking services for cryptocurrency trading in India. One month since the clarification, but cryptocurrency exchanges are still in flux. The RBI circular has not changed much, as many banks still continue to maintain a distance from cryptocurrency exchanges.
The RBI circular in May came after several leading banks sent notices to their customers warning them of account suspension if they continue to deal in crypto transactions. Many at that time hailed it as a positive step hoping it will bring clarity about crypto trading. Contrary to the notion, exchanges are still struggling with banks still hesitant to associate with crypto trading.