The Crypto Review reported that earlier this year, Bitcoin exchanges operating in India are being marred by frozen accounts for some and capped cash withdrawals for the others. The list of exchanges affected from the actions taken by the banks includes some of the top ones in their space. With limited cash flow, as a result, the business of these exchanges is being directly hit.
Economic Times was able to confirm these details from its unnamed sources that are involved in the matter. According to the report, banks like SBI, Axis Bank, HDFC Bank, ICICI Bank, and Yes Bank have started to take actions against the bank accounts of exchanges that have suspicious transactions. The exchanges that have got their accounts suspended or limited include Zebpay, Unocoin, CoinSecure, and BtcxIndia. Hence, it pays one to know how to sell ethereum for paypal usd the right way.
These Bitcoin exchanges have borrowed huge sums from the banks in hope for securing investments, but that isn’t happening. In the present time, India lacks a legal framework for Bitcoin or any kind of cryptocurrency, but it isn’t even illegal. That’s the reason venture capitalists aren’t taking much interest in the cryptocurrency space for now, at least until the taxation part is clarified.
As per the report, at least eight bank accounts of these exchanges have been suspended. And for the ones that have got a cap on cash withdrawals may also face suspension in the near future. This is being done after the banks discovered these accounts being used for things other than what was stated while opening them.
However, a source of the publication has suggested that the Reserve Bank of India hasn’t issued any orders for this scrutiny, the banks are taking the steps on their own. With the surge in the cryptocurrency market in India, the lawmakers have started to take interest in these Bitcoin exchanges and their cash flow. The tax department had started assessing these exchanges from last month. While the government and the Reserve Bank have also issued warnings against Bitcoin trading.
