Indian Banks Threaten To Close Crypto User Accounts

By Katelyn James | January 18, 2019
Indian Banks Threaten To Close Crypto User Accounts
Indian Banks Threaten To Close Crypto User Accounts

According to reports on social media, one of India’s leading private banks has threaten to shut down accounts that deal in Bitcoin and other cryptocurrencies.

On January 11th, Anthony Pompliano, founder and partner at Morgan Creek Digital, published a tweet on Twitter that showed the news about the threats on closing bitcoin trading accounts in India banks. He also indicated that people should be allowed to do whatever they want with the wealth. “Long Bitcoin, Short the Bankers!” he tweeted.

Pomp’s tweet came directly from another Twitter user; Indian CryptoGirl, who commented on the situation that Indian Banks now make the decision to close users’ accounts without any correspondence.

According to Indian CryptoGirl, on January 12th, the Kotak Mahindra Bank decided to close her account doing transactions involving cryptocurrencies. Indian CryptoGirl also quoted the bank announcement: “We noticed that you have made a transaction involving cryptocurrencies, so we will close your account within 30 days.” to imply that there were no first warning about this action.

It comes as no surprise that the media reactions are furious with this action.  But this is not the first case in India. In 2018, the Reserve Bank of India (RBI), the country’s apex bank, banned banks from involving in cryptocurrency transactions.

At the present there are no solution to this situation. Government are planning to establish regulations that clarity for the market. However, before these regulations are actually valid, the RBI ban remains the rightful regulation in the country and users must abide by the stringent rules.

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