Top Indian Banks Hinder Transactions of Bitcoin Exchanges In The Country!
Suspecting dubious transactions and under pressure from the government, top Indian banks such as ICICI Bank, SBI, Yes Bank, HDFC Bank and Axis Bank have suspended accounts of top Bitcoin exchanges in India. Not surprising but as a citizen parking my money in a bank I'm furious as to these behaviour which is unacceptable.
If you are wondering why I think this type of behaviour from custodians of our money is wrong then I recommend that you read my post, "Banking Banana Republic—What Banks Are For and What They Are Actually Doing!"
I've also written about these arm-twisting tactics of Indian banks in my post, "Crypto India: Welcome To The Banking Banana Republic!"
Some of these banks are forcing these exchanges to operate with a collateral ratio of 1:1. Some of these moves have forced certain exchanges to increase their fees. Not only that, IT department is scrutinising them for direct and indirect taxation.
Some BTC exchanges in India operate with 15-20% margins. Scrutiny has been conducted by the IT department in recent raids against all the top exchanges including Zebpay, Unocoin, Coinsecure, Coinome and others.
"The banks have not contacted the company or the promoters regarding the actions you have mentioned," said Sathvik Vishwanath, promoter of Unocoin in a statement to ET.
As you know already, Bitcoin isn't illegal but nor is it legal. This grey status has been causing friction between the government and end users. Lack of regulations has ensured a possibility that these exchanges could be involving themselves in trading at their own platforms-atleast the IT department thinks so after it's initial scrutiny.
I'm of the opinion that the market in India needs to be regulated in order to make it safer for all parties involved to conduct further business. However, these arm-twisting tactics have made it difficult for these exchanges to operate. Cashflow problems are becoming increasingly common. But, these exchanges are finding solutions and implementing them quickly to ease burden of their customers.
I hope that the market continues to grow in India to a larger size making it impossible for the government to consider any bans. Hopefully, they will draft a reasonable framework and make our lives easier as investors and enthusiasts in this space.
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
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Wow, this is quite foolish of the government. The amount of revenue that can flow into India via bitcoin trading can only be imagined in the next one year if it was allowed to thrive unhindered. It's actions like this that caused china to lose out on being at the fore of a new global border-less economy with fluid liquidity the world has never seen. An act they will forever regret. I hope India doesn't do same because like Victor Hugo said: You cannot stop an idea whose time has come.
I like your firepower so i followed.
It's a short term regulation. It won't last longer. They vl begin transactions soon.
True that. I don't think they will do it. Just make a show of force now and then that's all.
I really hope so. India needs all the new surge in their economy that bitcoin brings with it, with a population that huge they ought to swing open the doors like Japan.
i also like his firepower. i love the update
I think India is starting a silent war lately with cryptocurrency exchanges, but I hope they will regulate everything and follow Korea and Japan, I f India legalizes digital currencies I believe Billions of dollars will be put in the market but I think this a far hope as for now
I agree. But the government is corrupt and are unlikely to bow to these disruptive alternatives to central banking. I hope it happens though. Btw, I noticed that you haven't blogged in a while. Why don't you start again? :)
corruption is almost every where, even here in Uganda. But hopping that things change this year.
I heard that from one of our indian groupmate in #steemitachievers sir @firepower, that the government in india is not that accommodating regarding crypto currencies. I also heard some humors that crypto might be an issue in the philippines. I hope the government will just impose a fair regulations between parties.
Most governments in the world want to shut Bitcoin and put an end for it.
very soon once they see profits in it they will beg to take their pie from it, and then the price wont be even affordable to a government to get in strongly in the game so they will just get in and be part of the game.
Soon we will see everything starts to change I am sure about that.
Thanks for the article.. Keep it up
Nope they want to regulate it not shut it down. This is not BitTorrent.
They won't need to shutdown Bitcoin because as my latest post addresses it will die out itself, BUT the other cryptocurrencies I totally agree they are scared of because they can do everything the government does, but 100x better (for the people anyway).
Those dying centralized institutions just don't want to let go quietly.
I'm not worried. The more they squeeze, the more they show their hand. People have had it with that scam known as "central banking."
Peer-to-peer for the win.
To be fair there probably are some dubious transactions.
Regarding cryptocurrencies, Indian government and authorities are always like that jealous mathematics teacher who won't let the students use new methods to solve problems.
bad news, the government should not took steps like this. Why are they against crypto? are they afraid crypto will end their corrupted banking system or it will give young ones to earn some bucks for their family?
@firepower. The Indian government is skeptical about cryptocurrency maybe even afraid of endorsing its adoption because they don't yet understand the benefits of allowing its use. Like the popular saying "People fear what they don't understand". I have a feeling it's the octogenarians/traditionalist who are dubious of cryptocurrency standing in its way. Hopefully it will change
According to Reuters, a research conducted within India found that Indian citizens across a period of 17-month holds more than $3.5 billion worth of trades and other transactions.
You can check my complete article which I wrote today.
https://steemit.com/trading/@dailytech/indian-s-cryptocurrency-traders-has-possibly-received-tax-notes-from-government
Really pathetic thinking from the Indian government.Are they going to stop the inflow of cryptocurrency in India?I am Worried now.
They can only arm twist exchanges but they cant really stop cryptocurrencies. Cryptocurrencies are not limited by boundaries of countries. Bitcoin especially doesn't reside in any country. It's only on the internet and quite unstoppable. People can still buy and sell to each other easily. :)