Unicas, the Indian crypto bank, has planned to open 50 banks in India by the end of 2021, but a proposed bill banning crypto could complicate matters.
It has been reported that Unicas allows customers to access fiat and crypto services at the bank and provides digital loans using crypto holdings as collateral.
However, the bank aims to launch 50 branches across the country by the end of the year and 50 more by the end of 2022.
The report said that its plans may be stifled, due to a crypto bill that is awaiting consideration in India’s parliament. The Cryptocurrency and Regulation of Official Digital Currency Bill are intended to “prohibit all private cryptocurrencies” while also creating a regulatory framework for a digital rupee issued by the Reserve Bank of India.
Unicas crypto bank has opened its third location amid the imminent crypto ban in India. They plan on launching 50 more branches across the country by the end of the year as well. https://t.co/Arz9r49LTn — Cointelegraph (@Cointelegraph) March 2, 2021
The bill also said that it will allow for “certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
Kumar Gaurav, the CEO of Cashaa, said:
“There is no way any government can ban crypto given its nature as a global, decentralized system.”
Likewise, he opined that the Indian government is attempting to crack down on crypto scams with the proposed ban.
“The government is only trying to put a full-stop to any scams operating in the name of crypto. Overall, banning crypto will not be a win for anybody. And I trust even the government understands that very well.”
He further stated:
“Depriving the country of the technology and opportunity which is being created by crypto is not very different from depriving someone of the internet.”
According to the report, the proposed legislation is currently being considered in the upper house of India’s Parliament as part of its budget session, which is in recess until February 28 (Sunday). The government is reportedly considering a legislative shortcut to pass the bill by using the “ordinate route.”
It has been analyzed that this method would require the president of India, Ram Nath Kovind, to issue an ordinance when Parliament is not in session.
It’s not clear how the bill passage would potentially affect Unicas’ operations in India.
An anonymous source claiming to be a senior Indian Finance Ministry official claimed earlier this month that the use of all cryptocurrencies would be completely banned in the country under the proposed bill.
Thus, Nischal Shetty, the CEO and founder of India’s WazirX exchange, said:
“The government isn’t in a hurry to make a decision on crypto and might consult with stakeholders rather than outright banning it.”