Citibank India notice for trading on CEX.io

in cryptocurrencies •  10 months ago

Inspite of their high charges CEX.io is still the easiest and most hassle free way for buying Bitcoin and Ethereum for newbies. It could be in terms of ease of use, ability to buy bitcoin without the KYC or with respect to the ready made templates for buying the cryptos.

Buy Bitcoin with credit card

It was all hunky dory and until I got a notice from Citibank India stating that I have violated the guidelines mentioned under Foreign Exchange Management Act (FEMA). The notifications that is cited in this caution letter is https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8427&Mode=0 I went through the details and it seems like it is only a caution letter :P I am discussing this with my Chartered Accountant and once I get an advice I will update in the comments section.

I am adding the scans of the notice and the form that needs to be filled and submitted in Citibank branch.

The Notice

citibank-fema-notice-for-trading-on-cexio.png

Undertaking Form to be submitteed

citibank-fema-notice-for-trading-on-cexio-form.jpg

I am sure that many Indians have purchases bitcoins from CEX.io. Would like to know if anybody else have got these so called caution letters. They have not mentioned any final dates for the submissions. So I am planning to wait for a couple of days to see if anybody else have got these notices and what they are planning to do.

Would love the feedback from Indian Cryptosphere.


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So what u did at last

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I have stopped using credit cared on CEX.io. Looks like it was just a warning.

I know someone who has used HDFC CC to purchase and didn't face any problems whatsoever.

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That is good to know. I have pretty much stuck to a single CitiBank Credit Card till date. I think it is time to get a new one now :P

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Have used an HDFC Bank CC along with Standard Chartered for two separate transactions. The transaction went through with both these bank cards. I also hold a Citi Bank card and did not transact any amount on that card and still received an email informing me about FEMA violation if I use my credit card to buy Bitcoin in an overseas exchange !! After that mail I am unsure whether to transact on a foreign exchange or is it not worth the risk . If anyone else has any clarity on the legal status of transactions of this nature, please do share . Thanks.

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It is suggested to purchase from Indian exchanges using FIAT. Once you have some cryptocurrency you can transfer it to foreign exchanges.

Just make sure that FIAT to crypto and crypto to FIAT conversions happen on Indian exchanges.