Top bank suspends accounts of ten major Bitcoin exchanges in India
January 20, 2018In what came as another crackdown on bitcoin trading, most of the top banks of the country have temporarily suspended the accounts of major Bitcoin exchanges on the suspicion of dubious transactions. The legal action has been initiated by leading banks such as State Bank of India, Axis Bank, ICICI Bank, HDFC Bank and Yes Bank against the top ten cryptocurrency exchanges including Zebpay, Unocoin, CoinSecure, BtcxIndia, among others.
The total estimated revenue of these exchanges in India stands at Rs. 400 billion with approximately 20 percent commissions made by these exchanges. The top lenders suspended accounts of these major exchanges after the banks discovered that they were used for reasons other than those stated when they were opened.
These banks have also sought additional collateral damages for the fraudulent transactions from the promoters of such exchanges. Besides this, the banks are also keeping a check on the withdrawals taking place from the accounts that are still operational.
The tax department has also recently given notices to thousands of people dealing in cryptocurrency after a nationwide survey showed that more than USD 3.5 billion (RS 2,234 crore) worth transactions have been conducted over a 17-month period.
Tech-savvy young investors, real estate players and jewellers are among those invested in bitcoin and other virtual currencies, tax officials told Reuters after gathering data from nine exchanges in Mumbai, Delhi, Bangalore, and Pune.
The Union Finance Minister, Arun Jaitley, has also expressed concerns over trading on these platforms. He said that Bitcoin or cryptocurrencies are not legally permissible in India and those investing in it are doing it at their own risk. He also said that a committee is looking into the possibility of imposing restrictions on virtual currencies and that eventually, parliament would have to legislate a regulatory regime.
The total estimated revenue of these exchanges in India stands at Rs. 400 billion with approximately 20 percent commissions made by these exchanges. The top lenders suspended accounts of these major exchanges after the banks discovered that they were used for reasons other than those stated when they were opened.
These banks have also sought additional collateral damages for the fraudulent transactions from the promoters of such exchanges. Besides this, the banks are also keeping a check on the withdrawals taking place from the accounts that are still operational.
The tax department has also recently given notices to thousands of people dealing in cryptocurrency after a nationwide survey showed that more than USD 3.5 billion (RS 2,234 crore) worth transactions have been conducted over a 17-month period.
Tech-savvy young investors, real estate players and jewellers are among those invested in bitcoin and other virtual currencies, tax officials told Reuters after gathering data from nine exchanges in Mumbai, Delhi, Bangalore, and Pune.
The Union Finance Minister, Arun Jaitley, has also expressed concerns over trading on these platforms. He said that Bitcoin or cryptocurrencies are not legally permissible in India and those investing in it are doing it at their own risk. He also said that a committee is looking into the possibility of imposing restrictions on virtual currencies and that eventually, parliament would have to legislate a regulatory regime.
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