Cryptocurrency bank Cashaa is set to launch operations in India from August, which is expected to help investors and exchanges tide over the current banking problems that they are facing.
“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,” said Kumar Gaurav, CEO and Founder, Cashaa.
Apart from personal bank accounts, Cashaa will also offer debit cards and loans against cryptocurrencies as well as loans for buying cryptocurrencies, Gaurav further said.
Operations will start in New Delhi, Gujarat and Rajasthan with plans to expand to Maharashtra, Uttar Pradesh and West Bengal gradually.
Gaurav said that it is already in discussions with domestic cryptocurrency exchanges and has plans to acquire five million customers.
Cashaa is working in association with The United Multistate Credit Co. Operative Society. It is currently banking on its beta platform over 200 crypto businesses, including Nexo, Huobi, CoinDCX and Unocoin.
It also plans to open physical branches and has already opened up three branches. It is also working on a franchise model to expand to 100 branches.
Gaurav said all KYC norms will be followed as done by any other bank.
Cryptocurrency investors continue to face challenges in banking transactions with almost all major banks not permitting such transactions.
Players say the recent circular by the Reserve Bank of India on May 31 asking regulated entities to not cite its April 2018 circular on “Prohibition on dealing in Virtual Currencies” as it is no longer valid following the Supreme Court ruling, has not helped ease concerns of banks.
“We are still in discussion with banks but there is no breakthrough yet in terms of any large banks servicing the industry,” said Nischal Shetty, CEO, WazirX.
Banks continue to be wary of such transactions and say there is no clear regulation for them to follow.
Many exchanges are looking at various solutions to help customers. These include using UPI or are looking at their own gateway solutions.
Players say what is needed are the services of a major bank that can cater to a large scale of transactions and volumes. “Most payment gateways also use large private banks. So unless one of them is willing to work with cryptocurrency transactions, it is difficult to ensure seamless banking services,” noted a player.