Top banks which includes HDFC Bank, Axis Bank, State Bank of India, Yes Bank and ICICI Bank have taken action against major Bitcoin exchanges in India by way of suspending some of its accounts. The suspension of accounts comes after the bank suspected dubious transactions.
It is to be understood that Bitcoin and other cryptocurrency transactions is highly unregulated in India and it is still in its initial phase. The recent developments in the cryptocurrency space have called for more attention and regulatory measures in the space. Bitcoin’s value skyrocketed to a great extent in the past few months garnering attention all over the world. Many countries have now come up with drafting and creating rules and regulations with regard to cryptocurrency management and transaction.
After suspension of the account, the banks have also called for additional collateral to be submitted by the promoters of such suspended exchanges on their own borrowings. There is also a cap added to the cash withdrawals of few other accounts that are still functioning. The bank has sought additional collateral with a ration of 1:1.
The bank is also in the process of scrutinizing current accounts of the Bitcoin exchanges to make sure everything is on the right level. The banks have initiated action against 10 Bitcoin exchanges including that of BtcxIndia, Zebpay, CoinSecure, Unocoin and others for dubious transactions. However, Sathvik Vishwanath, the promoter of Unocoin, says that, “The banks have not contacted the company or the promoters regarding the actions you have mentioned.”