India: banks threaten to close customer accounts if they use cryptocurrencies



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A group of banks in India began to send warnings to customers who threatened to close their accounts if they discovered that they had performed acts that included the use of cryptocurrencies.

According to a tweet published by Indian CryptoGirl, the banks that issued the warnings indicate that they have done so to comply with the regulations issued by the Royal Bank of India (the central bank of the country). One of the tweets shows how the RBI has forced the banks to close the accounts of any cryptocurrency user in what appears to be a move to ban them indirectly:

"As RBI saw its circular RBI / 2017-18 / 154 DBR.No.BP.CP 104 /08.13.102/2017-18 dated 6 April 2018, the regulator instructed the banks to close the accounts of customers who had transactions in virtual currency / bit coins (sic) at any time during the term of the account and that banks should not deal in virtual currencies or provide services to facilitate any person or entity in dealing with or regulating virtual currencies. the management of accounts, registration, trading, settlement, granting of loans against virtual tokens, acceptance as collateral, opening of trading accounts concerning them and transfer / collection of money in accounts related to the purchase / sale of virtual currencies ".

India: where Bitcoin is legally permitted, but practically forbidden

If it turns out that a person has been involved in one of the activities mentioned in the quote, the bank will close the account 30 days after the user has been informed. After this period, the user will not be able to withdraw or use their own funds.

Another tweet shows a non-liability clause of a bank that obliges users to accept a clause stating that they will not perform any kind of transaction in criptovalute, recognizing the right of the bank to close its accounts "without further notice" if they determine who have not respected this clause:

The measure seems to be an effort by the state to avoid the use of cryptocurrencies. Although the Indian Supreme Court has ordered the clarification of a government position regarding cryptocurrencies – which are not entirely illegal – there is still a regulatory gap that allows situations like this to happen while the government has not respected the Court's order .

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