Some banks had stopped providing services to the exchanges following an unofficial directive from the Reserve Bank. In the event of a transaction being hampered due to uncertainty in this regard. Apex court has already lifted ban of Cryptocurrency on March 2020.
Earlier this month, the exchanges had informed the government that a system similar to the Securities and Exchange Board of India (SEBI), the market regulator, would be suitable instead of the RBI. The reason given by the exchanges is that cryptocurrencies should be treated as commodities rather than currencies.
The exchanges allege that despite the Supreme Court quashing the Reserve Bank's order banning the trading of cryptocurrencies, banks are not providing services to exchanges and customers.
