India is slowly moving towards a crypto dark age again as several top private banks have started to send notices to their customers who invested in digital currencies and made transfers from their accounts.
According to The Economic Times report, banks like HDFC, HSBC and Citi are seeking clarification from their customers on crypto transactions. Most of these customers are additionally required to visit the branch in person, and they are risking suspension of their accounts if they do not oblige.
“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,” one of the notices stated.
Another Darkage for Crypto
This is happening when the Indian government is expected to introduce a bill in the ongoing parliamentary session banning all digital currencies. Many well-known finance personalities are further supporting this, calling the crypto rally speculation.
India had already been through a period when the crypto industry in the country almost died with the central bank’s draconian order of depriving the crypto companies of banking services. Many Indian banks sent similar notices to their customers at that time who were circumventing the ban to invest in crypto. Notably, the Indian apex court squashed that order last year in a landmark judgment.
Similar to India, the Nigerian central bank banned all banks from serving crypto companies and customers investing in cryptocurrencies, damaging a booming market.
Meanwhile, several banks in the developed countries are turning hostile towards crypto. HSBC in the United Kingdom stopped accepting all transfers from crypto exchanges, while Lloyds Bank is also reportedly flagging customers’ crypto transactions.