In an attempt to crack down on crypto-related transactions, Kotak Mahindra Bank, a major private retail bank in India, has issued a “Termination of Account” letter to one of its account holders.
The report surfaced as one of the crypto enthusiasts in the country posted a snapshot of the letter on Twitter.
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“We noticed you did a transaction involving crypto, hence, we will close your account within 30 days”
– Kotak Mahindra Bank
P.S: Glad they’re doing it for me pic.twitter.com/JIWzeU54i5
— Indian CryptoGirl (@DesiCryptoHodlr) January 12, 2019
India and Crypto
Today, the crypto scene in India is murkier than ever. After the Indian Finance Minister declared crypto an illegal tender, the central bank banned all banks from dealing with cryptocurrencies or crypto-related transactions. This drove many crypto startups away from the country.
However, a handful of crypto businesses formed a consortium and appealed to the country’s apex court against the central bank’s decision. The case is still pending with the court.
In October 2018, Unocoin, one of the country’s top Bitcoin exchanges, deployed a Bitcoin ATM at one of the shopping malls in the country. However, weeks after the installation, the authorities registered a case against Unocoin for setting up the ATM without permission and have also arrested one of the company’s co-founders.