There are signs of non-traditional banking services to be more active in crypto trade. A larger network may support cryptos. Cryptos could thus be easily exchanged into rupees.

An institution called UNICAS has been launched. It is crypto friendly and has 43 branches. It is a tie up between Cashaa and United Multistate Credit Co-operative Society from Jaipur. UNICAS offers traditional banking services along with crypto-banking services. They operate online as well as through physical branches.

Bitcoin holders and holders of other cryptos can access UNICAS to convert them into Indian rupees to pay merchants. Merchants will be paid in a regular way by payment processors. UNICAS will settle with the bank to make payment with the processor.

Cashaa started dealing with cryptos when RBI banned banks to do so. Almost 90 per cent of banking services to India’s crypto exchanges are provided by Cashaa. They also advance loans against the collateral of bitcoins, where the loan-to-value (LTV) ratio is 50-70 per cent.

To day, there are estimated 8-10 million accounts of cryptos with various exchanges. It is estimated Indian investors hold 8000-10000 bitcoins in their individual wallets.

If cryptos are treated as a commodity, they will attract GST but the rate and valuation will remain a subject of debate.