On March 4, 2020, the Supreme Court nullified the RBI’s ban on banks dealing with crypto businesses. However, the cryptocurrency businesses in India are still unable to gain a foothold as unclear directions continue to limit their banking interactions with tax reforms.
Thus, the exchanges have formally drafted a letter to the RBI asking why they are still being denied banking services despite the overruling of the ban order and the reason for lack of willingness to offer guidance and instructions from the regulator.
The cryptocurrency exchanges in India demand clarity on the classification of their business. Their categorisation under commodities, goods, and services or currencies will ultimately decide how they will be taxed under the new GST system.
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