June 21, 2021

Indian banks put crypto traders’ accounts under the microscope

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Cryptocurrency traders and investors in India are among the latest casualties in an increasing trend of personal account closures by global banking operations. 

India’s parliament is currently contemplating a nation-wide crypto ban which local industry critics, such as former Coinbase CTO Balaji Srinivasan have compared to “banning the internet for five years.”

The Economic Times reports that customers of private banks in India, such as HDFC, HSBC and Citi, have been receiving notices this year asking them to clarify crypto-related transactions, often requiring them to visit their local bank branch in person. If such clarification is not received, accounts are at risk of being suspended or seized. One letter to an affected customer states:

“To comply with the regulatory guidelines, banks are advised to exercise due diligence by closely examining the transactions carried out in the account on an ongoing basis to caution users, holders and traders of virtual currencies including Bitcoins regarding risks.”

In 2020, India’s Supreme Court reversed an order from the Reserve Bank of India in which banks were asked to discontinue provision of services to cryptocurrencyTitle: Indian banks put crypto traders’ accounts under the microscope
Sourced From: cointelegraph.com/news/indian-banks-put-crypto-traders-accounts-under-the-microscope
Published Date: Wed, 24 Feb 2021 01:49:04 +0000