India's RBI and FIU Review Overseas Crypto Cards as Users Report They Do Not Work

India’s Reserve Bank and Financial Intelligence Unit are reviewing the use of overseas crypto cards as users report that the cards cannot be used in the country. According to Foresight News, The Economic Times cited two people familiar with the matter who said the cards let Indian residents convert cryptocurrency into rupees for domestic purchases and cash withdrawals. Over the past few days, access to some users’ cards and service providers’ websites has reportedly been blocked. Since October 29, multiple users have posted on social media that their crypto cards do not work in India. The sources said the Reserve Bank of India (RBI) and the Financial Intelligence Unit (FIU) are in discussions with Visa and Mastercard, and that the payment networks may have begun disabling crypto card transactions made in India or initiated from the country. The RBI, Visa and Mastercard did not respond to requests for comment. The blocks may be linked to a warning from Digital South Trust, an Indian nonprofit blockchain research organization. In August, the group applied for a Visa-backed RedotPay virtual crypto card, conducted several online transactions in India and submitted records to regulators. The report and legal and tax professionals interviewed by the newspaper said the cards may breach India’s Foreign Exchange Management Act (FEMA) and regulatory frameworks for prepaid payment instruments (PPI) and payment and settlement systems (PSS).