Cashaa, a cryptocurrency bank, is gearing up to provide banking services for cryptocurrency customers in India. The bank will be opening up a credit cooperative society to allow customers to access services for digital currencies as well as fiat currencies.
The company has launched Unicas in association with the United Multistate Credit Co-operative Society. Unicas will be the world’s first financial institution catering to cryptocurrency at physical locations.
The development comes at a time when the Reserve Bank of India (RBI) has advised financial institutions to steer clear of the speculative crypto sphere and the government is looking to regulate such sectors as well.
"As we give services to members only, we do not need the RBI’s permission for this model. United is also a member of the National Federation of Urban Co-operative Banks and Credit Societies Ltd (NAFCUB) vide membership No. 1753 and certified with ISO 9001:2008 for Quality Management Systems," Cashaa Founder and CEO Kumar Gaurav told The Indian Express.
Credit cooperatives are subject to fewer regulatory procedures than opening a private banking service. For one, the former does not directly come under the ambit of the RBI. The bank is expected to open for service around Independence Day while the rest of the banking services will be fully operational by the end of the year.
"Today, with more than five banking partners in three continents, we are providing business banking to more than 250-plus crypto companies. With our vast network of partners, Cashaa is leading the way for crypto-friendly global banking services (B2B)," Gaurav added.
While cryptocurrency is not illegal in India, it occupies a legal grey area for the time being. With RBI being against such digital currencies, and the Government of India planning to back the central bank by possibly banning cryptocurrencies, the future of Unicas is yet to be determined.
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