Indian crypto bank Unicas opened its third physical branch in New Delhi last week. Previous locations were published in Jamnagar and Jaipur.
Unicas would allow customers to access fiat and crypto services at the bank and provide digital loans using cryptocurrencies as collateral. The bank intends to open 50 branches across the country by the end of the year and 50 more branches by the end of 2022.
However, their plans may be stifled due to a cryptocurrency bill that has yet to be scrutinized in the Indian parliament. Official cryptocurrency regulation and law aim to “ban all private cryptocurrencies” while creating a regulatory framework for a digital rupee issued by the Reserve Bank of India. However, the bill also states that “certain exemptions will encourage the underlying cryptocurrency technology and its use”.
In a previous statement to Cointelegraph, Kumar Gaurav, CEO of Cashaa, said that “there is no way that a government” could ban cryptocurrencies as it is a global and decentralized system. Yet, said the Indian government is trying to crack down on cryptocurrency fraud with the proposed ban.
“The government is just trying to put an end to any fraud that is carried out on behalf of cryptocurrencies,” said Gaurav. In general, the ban on cryptocurrencies is not a win for anyone. And I trust that even the government understands that very well.
“Depriving the country of technology and the opportunity that cryptocurrency offers is no different than depriving someone of the Internet.”
The proposed legislation is currently under scrutiny in the Upper House of the Indian Parliament as part of its budget session, which is suspended until March 7th. Yet, The government would consider linking legislation to get the bill passed the “orderly” way. This method would require Indian President Ram Nath Kovind to issue an ordinance when Parliament is not in session.
It is unclear how passing the law would potentially affect the activities of unicas in India. An anonymous source claiming to be a senior official in India’s Treasury Department earlier this month claimed that the use of all cryptocurrencies in the country would be completely banned under the proposed bill.. However, Nischal Shetty, CEO and founder of India’s WazirX exchange, said “the government is in no rush to make a decision” and that it could consult with stakeholders rather than banning them altogether.