Banks in India Stop Taking Deposits from Crypto Wallets

A large number of cryptocurrency investors operating from India have been stuck in a conundrum as Indian banks are not allowing them to deposit their money earned by trading on exchange platforms.

The findings, done by the Business Line newspaper, also say that investors were neither able to withdraw their invested money into their bank accounts nor were able to trade on cryptocurrency exchanges being operated in the country.

The newspaper also reports the grim situation faced by the investors as they have no recourse on further action. The banks as well as the exchanges are shifting blame on the other party when interrogated by the people regarding their money.

Speaking to the paper, an investor from Varanasi said that they had sent a mail to their exchange who replied that they have not received the money but their bank statement shows that the money was in fact, credited to the exchange. The bank is also keeping mum on the issue and refuses to give any clarification even on repeated questioning. Another investor from Delhi expressed his inability to withdraw his balance from his account, with the service asking for re-verification even though verification details were submitted in advance.

The newly formed body looking after Blockchain and cryptocurrency as well as representing the cryptocurrency exchanges operating in India, the Cryptocurrency Committee of India, spoke to the newspaper about the issue. According to them, the recent and the sudden wave of actions by certain Indian banks where they have closed or frozen the accounts of Bitcoin exchanges have increased the hardship of these exchanges, which in turn, is causing a lot of inconvenience to the end consumers.

The Committee assured the newspaper that they would be holding a series of comprehensive meetings with the consortium of banks to remove blockages and to make them understand everything about cryptocurrencies in order to ensure their smooth flow in the country.

The news comes in the backdrop of earlier reports of Indian banks closing accounts of Bitcoin exchanges on suspicions of misuse.

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