The UK-based Cashaa, an online banking platform to manage fiat and cryptocurrency, plans to launch its India operations early next month, offering loans for and against crypto assets. This move has raised brows within the financial circle as the company has taken the credit cooperative society route when the Reserve Bank of India (RBI) frowns on private virtual currencies.
Unicas, a joint venture between Cashaa and United, claims to be the ‘world’s first cryptocurrency financial institution with physical locations’ created to “satisfy the regulatory requirements” in India.
The company plans to launch personal accounts services in India including savings accounts for Indian Rupees and cryptocurrency, loans for buying cryptocurrency, lending against cryptocurrency, and card services, the company said.
Even after the Supreme Court order struck down the Reserve Bank of India (RBI)’s ban on cryptocurrency last year, private and public sector banks in the country have warned their customers against using their services to trade in cryptocurrencies. To get a pie of the growing crypto market in India, the company will be releasing personal account services by mid of August, coinciding with India’s Independence Day.
According to Cashaa, Indian banks appear to be cracking down on cryptocurrency and exchanges, although cryptocurrencies have not been formally banned in India. Banks are halting transfers to crypto-related accounts, causing Indian crypto exchanges to struggle to keep fiat coming in. As a result, these exchanges are now turning to Cashaa for fiat services.
Cashaa claims to have the largest market share of crypto banking in Europe, with over 200 crypto companies banking. In addition to the Unicas venture in India, Cashaa will launch its services for personal users in the United States, United Kingdom, and Europe in 2021, powered by the CAS token.