India is one of the coldest countries in the world in relation to cryptocurrency. In the spring of 2018, the country’s reserve bank prohibited financial institutions from providing services and products related to cryptocurrency to individuals and companies.
The charm of the new decree has already been felt by ordinary users of banks in India. So when trying to use the services of one of the largest banks in the country, Kotak Mahindra, the client needs to confirm that he is not going to use any cryptocurrency, including Bitcoin. Otherwise, the bank has the right to close the account without explanation.
The new user policy CryptoGirl has written about banks on consumers in their microblog on Twitter. She notes that this message first appeared in December. And before that, users received SMS messages about changes in the bank’s policy on cryptocurrency.
Kotak Mahindra Bank is not one of a kind. Similar messages are received by FaySalBank customers in Pakistan via SMS mailing. And people will receive similar messages from the spring of 2018.
The Reserve Bank of India decided to ban cryptocurrency operations for financial institutions in April 2018. The regulator made this decision due to the fact that digital currencies contribute to money laundering, transactions in black markets and complicate the process of control over the movement of capital.
At the same time, the government did not rule out the creation of a national cryptocurrency. Also at the very beginning of 2019, top management discussed the issue of legalizing digital assets subject to strict regulation of this niche. At this stage, all licensed Indian banks have the right to close accounts of customers using Bitcoin and other digital currencies, without explanation.