Secondly, banks are reluctant to accept cryptocurrency due to the current rules for the circulation of electronic money. By the way, these rules will be tightened even more. For example, Russia plans to pass the draft law “On digital financial assets” (DFA). But this project contains a number of contradictions. It recognizes digital currency as a means of payment, however, prohibits the use of it to pay for services or goods. This inconsistency will result in financial institutions simply not being able to process cryptocurrency transactions.
This is quite true in the case of India as well. In India, RBI had issued a notification banning banks/regulated entities from entering into transactions with entities that dealt with cryptocurrencies in 2018. All the banks then refused to service any crypto exchanges due to the notification. However, this was successfully challenged before the Supreme Court and which quashed the notification and thereafter dealing in crypto was made very smooth.
Recently, some banks were found quoting the quashed notification to refuse services to crypto exchanges. Therefore, RBI again issued a confirmation that its previous notification was no longer valid and that banks are allowed to provide services to crypto exchanges.
You can read my article on real news on Indian crypto news
here