Are Banks pulling the plug on Crypto Transactions in India?

Recently, Reliance JIO announced launching its own blockchain based crypto in India and being one of the largest conglomerate not just in India but across the globe, this news gave hopes to a lot of crypto enthusiasts in India. @firepower wrote a detailed post about what this announcement could mean to crypto scene in India owing to the relationship that Reliance shares with the current Government.

When the largest business house of the country wants to enter into a new market, it surely will give hope to the fence sitters which is anyway good for the crypto scene. However, another problem has cropped up and this time it is about converting your crypto money into the real money.

A news reported appeared in Hindu Business Line regarding banks not taking deposits from wallets

Now crypto means nothing if it can't be converted into real currency, which we call as Fiat money. Untill crypto becomes mainstream, the conventional currency is what we are after in the real sense. If banks act the way they are acting, it would be really difficult to promote crypto scene in India.

The report states ," These investors told BusinessLine that they are unable to either trade on some of the bitcoin exchanges or withdraw the invested amount into their linked bank accounts. The investors are also finding it tough to file a complaint in this regard as both the banks and the bitcoin exchanges are passing the buck to each other.

Similar problems were registered by other users who found it difficult to withdraw money sent to banks via crypto exchanges. Now that's a serious concern and it very well could be an indirect order (verbal orders from RBI) asking them to keep crypto transactions on hold.

This despite the fact that no banks or exchange or wallet allows transacting even a single rupee without submitting KYC documents. This is sheer incompetence and nothing else.

If anyone is earning money, tax him. Ask him to pay for the money earned and get done with it. These arm twisting tactics reveal nothing but show the incompetence of regulatory authorities to frame regulations.

Hopefully launch of JIO Coin will change things for better.