7 October 2022
Indian banks Inspect Crypto Traders’ Accounts
Amid the Cryptocurrency ban, Indian Cryptocurrency traders and investors are the victims of Global banking operations for personal account closures.
“India’s parliament is currently intending for a nation-wide Crypto ban”. This event is compared to “banning the internet for five years” by former Coinbase CTO Balaji Srinivasan.
As per the Economic Times reports, customers of private banks in India, such as HDFC, HSBC and Citi, are receiving notices this year to clarify crypto-related transactions. They are often required to visit their local bank branch in person. If such clarification is not received, accounts can be suspended or seized.
A letter of 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.”
India’s Supreme Court in 2020 had reversed an order from the Reserve Bank of India in which banks were asked to discontinue the provision of services to cryptocurrency traders. India’s parliament is expected to execute a new bill for restricting traders’ financial activities on which prominent members of the Indian cryptocurrency community have spoken against it.
Banks are also closing customer accounts deemed to be associated with crypto trading in various countries. The Central Bank of Nigeria on 5 Feb prohibited financial institutions operating in the country from “facilitating payments for cryptocurrency exchanges,” leading to the immediate closure of bank accounts associated with exchanges and the individuals behind them.
Recently, in the U.K., HSBC also stopped accepting transfers from cryptocurrency exchanges altogether. A long-time UK-based Bitcoin investor told Cointelegraph that major European banks are increasingly distancing themselves from crypto traders. He also said that banks rule out new accounts based on their crypto involvement.
