Crypto Users in India Might Have Their Bank Accounts Suspended

Traders and users of cryptocurrency in India might have their bank accounts closed if linked to crypto. The Indian government and Indian’s central bank, the Reserve Bank of India (RBI) seems to be very unfriendly to crypto.

Failure to Cooperate with the Bank Attracts Consequences

Various top Indian banks have already started issuing notices to customers who have transacted in crypto. Any cryptocurrency transaction, whether a transfer or deposit, automatically gives a red flag to the holder. HDFC, HSBC, and CitiBank have all started sending notices to their customers.

All three banks are asking their customers to explain the various crypto transactions carried out with their accounts. Furthermore, these customers must visit their various branches in person. Failure to cooperate with the bank might lead to the suspension of their bank accounts.

One of the banks’ notices issued to Indian customers explained that banks are doing this to comply with regulatory authorities. “Banks are advised to exercise due diligence by closely examining the transactions carried out in the accounts.” The notice also states that banks are required “to caution users, holders, and traders of virtual currencies including Bitcoins regarding risks.”

Will Crypto in India be Completely Banned?

Cryptocurrency in India has been suffering ever since it came into the country a few years ago. The government is currently working on a bill that would ban all digital currencies in the Asian country. Ironically, this bill is termed ‘The Cryptocurrency and Regulation of Official Digital Currency Bill.’ The bill would give crypto users 3-6 months to bring all their transactions to a stop. Also, Indians will be prohibited from using any crypto exchange, foreign or local.

There are rumors that crypto might not be completely banned in India, and that the government is working on creating its own coin. Dubbed the ‘digital Rupee’ the coin would be the only digital currency allowed in the country. Details about this coin are yet to be released to the public. As for other cryptocurrencies, their future looks bleak in India.