London-based online banking platform Cashaa plans to launch a new secure crypto bank – or online banking services – in India.
Kuman Gaurav, founder of Cashaa, told Cointelegraph that Cashaa India will allow Indian companies and individuals to open savings accounts with them and buy, store and hold cryptocurrencies like any other financial instrument.
“For lending, we will add a class of cryptocurrencies along with gold and real estate as collateral,” he said.
Gaurav explained the need for a crypto-friendly bank in India and said that most Indian banks are reluctant to provide banking services to cryptocurrency users. He added that Cashaa India will be the first registered bank to allow the deposit and withdrawal of cryptocurrencies in the same way it is done today for the Indian rupee.
Cashaa has provided B2B banking services to most of the Indian cryptocurrency companies. The new bank launch of the platform will allow the expansion of crypto and retail banking services as well.
Cashaa recently gained government approval to operate as a cryptocurrency friendly online banking platform in the UK, Europe and the US. The company intends to launch a banking platform supporting the euro, the British pound and the US dollar by December of this year.
Gaurav said Kasha would first start offering its banking services to Indian cooperatives and would launch its full service next year. The company focuses on “three major states” in India, from which they plan to expand across the country.
Speaking of the rules in India, Gaurav said the country’s fintech bases are still developing. This, he said, is the reason why it is so difficult to contain financial fraud with one-time passwords and phishing techniques.
He also added that the government and financial institutions in India are well aware of the potential of cryptocurrencies, and there have been no indications from authorities about a possible cryptocurrency ban. He stressed that media reports about the impending ban on cryptocurrencies in India are just speculative stories, adding that the rules are unlikely to prevent Cashaa India from providing digital currency services to its users.