Top Indian Banks Hinder Transactions of Bitcoin Exchanges In The Country!

in #bitcoin6 years ago

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.


Source

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.


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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. :)

Governments will soon realize that if they Ban the use of cryptocommerce in countries that have large rural populations unserved by available financial institutions, they will be doing a great disservice to advancing culture. Many parts of India and Africa are realizing how crypto is giving a "voice" to people who need to trade goods, services, etc., and not having access to banking institutions, but having a phone, crypto becomes the perfect mechanism. How about "Ive got a pen, and I've got a phone, and I'm gonna trade my crypto!" :)

I like the last line very much :D haha

thanks man! Appreciate it!

This is always the case. The biggest issue with crypto is getting money into and out of it via the traditional banking system.

Perhaps all submit KYC after that if bank suspend account then it is very serious matters, informative post

One of the reasons why LBC has always been the best.

I strongly believe that India is not doing correct here by blocking cryptos, messing with bank account of exchanges can break the trust of customers at the exchange, they will not buy there and some might even lodge complaint against exchange and indirectly expose themselves to Income tax department.
On the other hand if India makes a law to accept cryptos as a legal tender by linking with AADHAR card, they can monitor all purchases and a part of profit will go to government and companies will invest in India as they are pro-crypto.

It is not uncommon, the great powers that plan to have the whole world controlled, it is not convenient for the world to adopt the cryptomoneda as the main monetization system since they would lose all political and economic control.

What a good news?!I hope this issue play new chance to bussiness in bitcoin world have a effective change in whole over the banking

good post

Nice info ..but sad for us

Thank you very much for your valuable post sharing.....
i like this blog,,, i want you next post sharing us...
best of luck my dear friend

Wow, it's interesting to know the situation that is happening in India, thanks for the information

The good news, that bitcoin development takes time.

i don't know why some government are against this cryptocurrency. i still believe the future of steemit is great

Similar things are happening in the US, it is like the currency wars. Central banks don't want to loose their control (and us feeding their pockets)

I hope Steem stays out of the cross hairs while the war rages.

I hope it becomes regulated soon. Would make all our lives easier.

This is sad but not unexpected. We have a lot of world leaders and banks coming out now saying they are going to "regulate" Bitcoin.

What this means is tax it or ban it.

This is me after reading this news article. Looks like they are waiting for other countries to ban them first. If south korea bans then it will send a dangerous precident for other countries. Every one will start banning cryptos. When contacted via playstore Zebpay said that they are working as usual and nothing has happened.

Thank you for posting

Yes, because bitcoin transactions doesn't allowed fraud that why they want to abolished it. Government should embrace it.

hello hello friend today can read your publication, Bitcoin is a currency that continues to grow and strengthen. This is part of a strategy or financial boom, something of a certain bank of doubts. but at the end they will be wrapped up by the crypto-meneda. everything has its time
regards
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takecare

Man that sounds really unfortunate.

Excelente noticia. Gracias

India will eventually learn that blockchain technology cannot be stopped.

If they mess with it they will only screw their own people. Every nation should embrace blockchain and take full advantage of it.

maybe it's a good news, India great market @ericjordan

Its going to be quite interesting to see how this pans out in India. As the political atmosphere there is quite toxic and many of the financial transactions happen off the books and through bribes, the government is very opposed to crypto.

But as we all know, no gov can stop crypto, so to see things like ZenCash or something else break up the criminal title ownership business and bribery of officials via block chain will be great to put this country towards financial success.

India is such a dumb country. Use your steem to relocate.

Some BTC exchanges in India operate with 15-20% margins.

Damn that is cruel!

Its all about control...none of the ruling class like governments want to give up control and power...same in EVERY country.

This is not fair. Of course, this will slash the credibility of centralized banks. Long live cryptocurrencies. Long live blockchain.

Hey I was wondering if you could take a look at my account and give me a few pointers or some criticism. I would really appreciate it.

This is the most exciting issues for all of us. The monster govt never think about the people, nor they want to solve any problems permanently. I think they want to make it a great issue for the election purpose so that they could taxed people highly and can establish wrong impression about crpto currency in the mids of people.. Govt system is become a great disease for the people and societies. We are the citizens of such country, where everyone are living a uncertainty and enxieties, when and where the monster has ruined your life. We have to stay strong and alert for fighting for any situation, so in my opinion co-operation and connection between us is utmost importance for us ,to meet up with the situation. Thanks for sharing such a valuable information, I wish you a very beautiful time ahead.

Thanks for share this post.

La esperanza de que todo va a fluir sin dificultad en un futuro cercano, para las partes involucradas.

It is necessary to regulate the flow of coins and india government must have legalised crypto market by applying some rules and regulation. If the ban the crypto market in india the indian investors came in huge problem. Acc to me i read this in one of the data about $3.5 billions are invested in the crypto market. So transactions were hinder created a lot of problem for indian investors.

tag to @tinycryptoblog to resteem this.

koinex is taking years to approve my kyc, localbitcoins has crazy transaction fee as i planned to buy Rs.500 worth btc, Transfer fees was around Rs 400 😵

Did anybody try to cash out after this drama , let me know. I have not recieved any message from zebpay but i am skeptical that transfer would be stopped.
Thoughts @firepower

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