India’s Banking Sector Afraid Of Crypto, Leading Bank Threatens Customers By Putting Account Restrictions

One of India’s leading private banks, the Housing Development Financial Corporation (HDFC), is reportedly sending users whose banking transactions have been associated with cryptocurrencies emails that warn them against doing so, with the risk of having their accounts frozen should they continue doing so.

One user, the Indian CryptoGirl, tweeted about the about the subject, displaying the email that HDFC had sent out to some users,

The email states that the bank expects users to clarify any transactions that they suspect may be linked to digital currencies, and failing to do so may result in a frozen account.

Many businesses and crypto-enthusiasts have rallied against the decision by authorities, which have been harsh. Recently rumors have been floating that a bill completely banning cryptocurrencies had been drafted, and that it would be up for consideration for the new government following the end of the general elections in May. Anthony Pompliano has shown his support investors in the country,

The action by HDFC is similar to that taken by other banks in the nation, including Kotak Mahindra and Digibank. The reason stated by these banks is that trading in digital assets goes against the norms stated by the country’s central bank, the Reserve Bank of India (RBI).

However, banks in the nation are considering blockchain technology for various reasons.