Central bank retail payments system, the National Payments Corporation of India (NPCI), has reportedly refused to participate in the country’s disallowing of cryptocurrency trading to banks.
As per the Economic Times report, various bankers have apparently asked NPCI to go ahead and block crypto transactions on their respective networks. However, the agency argued that they should instead consult their very own legal and compliance departments regarding the matter instead of them. Basically, the NPCI wants banks to have the final say, not them.
This recent development serves as yet another chapter to the seemingly unending battle of the Indian government against cryptocurrencies and the like. Even more interesting is that such a ban came even amidst the explosion of digital asset trading volumes in the country for the past year. Notably, the NPCI’s remarks came at a time when various lenders started blocking crypto deals already.
Speaking of the Indian government’s stance on cryptocurrencies, IndiaTech.org, an industry group representing the country’s consumer startups and investors on the internet, implores a better and more precise definition for the crypto space.
This past Wednesday, the group published a white paper that includes several policy recommendations that aim to provide a purer view on India’s surging crypto industry. In summary, IndiaTech.org’s white paper argues that the government should distinguish cryptos as digital assets instead of currencies.