Banks are now sending mass mailer to create negativity about cryptocurrency

[avikz]

Major global banks have already cleared their intention towards crypto currency by spreading negative news about it. Many banks have suspended accounts of crypto business entities. Overall banks are extremely negative about this crypto currency market and they are trying to discourage people from using it in an organized way. They have thrown us in to a challenge where the playing ground is not even. However, banks in India have not yet shown any big threat to the crypto related business until today.

Today morning while checking my email, I found an email sent out by my bank that talks about crypto currency. While the tone of the email is pretty much neutral but that's enough to create a confusion among the people especially those who doesn't know anything about crypto currency in general. See the picture below,

Just in case, the picture doesn't show up, I have copied the text from the email below,

Dear Customer,

We request you to take note of the following important information.

Reserve Bank of India (RBI), vide its press releases dated December 05, 2017 has raised concerns and cautioned users, holders and traders of Virtual Currencies (VCs), including Bitcoins, regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs and also clarified that it has not given any licence/authorization to any entity/company to operate such schemes or deal with Bitcoin or any VC.
The Government has also advised that “Distributed ledger system or the block chain technology allows organization of any chain of records or transactions without the need of intermediaries. The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.”

Given concerns, both globally and locally including from the Reserve Bank of India, IDBI Bank would like to caution you regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with cryptocurrencies, including Bitcoins and virtual currencies.

Assuring you of our best services at all times.

Regards,
IDBI Bank Ltd., Mumbai.

This is an organized effort undertaken by the banks to discourage general people from the crypto currency. I don't know what legal grounds they have but it is clear that they are considering crypto currency as a potential risk to their business. If this continues, it will be hard for the community to attract new investors.

[coinmaster241]

Cornering the holders of the crypto in the country, worrying if this information is true from the Bank concerned, Perhaps because investors are diminishing and turning to investment crypto eventually banks make such statements, My advice should be as long as the country has not made an absolute decision regarding crypto do not be consumed by negative news. Whether it's from the bank itself or other parties besides the state's decision.

[CodyAlfaridzi]

Nothing new I think. The email just reminding you that virtual currencies, including crypto and Bitcoin, are risky and has not been legalize yet by your government. I really don't see any negativity from the email.

[botany]

This is an organized effort undertaken by the banks to discourage general people from the crypto currency. I don't know what legal grounds they have but it is clear that they are considering crypto currency as a potential risk to their business. If this continues, it will be hard for the community to attract new investors.

It is a risk to the banks' business, and not just indirectly. Banks have an obligation to monitor accounts for unusual activity and to report suspicious transactions. They may be subject to huge fines and regulatory actions if they are used for money laundering and they did not take 'due care' to prevent it. Since they cannot trace the flow of money accurately where cryptocurrencies are concerned, it is natural for them to dissuade customers from dealing in cryptocurrencies.

If I am not mistaken, banks are under no obligation to allow you to maintain an account with them. They can close your account saying that you have violated their terms and conditions (although you can take your money out). In India's case, with the central bank making a case against virtual currencies, I think banks will impose more and more restrictions on cryptocurrency transactions going forward.

[Adioliver]

Lol..I don't know why india likes to create panic all the time.They take everything too seriously, recently there was a ban on porn,like man really !?Its ridiculous right!!!!!. However the ban was lifted soon cause even the people who supported the ban of porn couldn't live without it and in the end the ban was lifted.Now the government has put it's attention towards cryptocurrencies and they think that cryptocurrencies will lead to loss of many people's money.But cryptocurrencies is really interesting and safe to deal with if you have the basic knowledge of buying, holding and selling it.I think Indian Banks should not have taken such steps, cryptocurrencies have a great future ahead and can be a secondary source of income for many provided they accept cryptocurrencies as a legal tender.

[Tharel]

Expect more of these as banks are being left behind when it comes to cryptocurrencies/blockchain technology. They'll definitely do whatever they can in order to destroy crypto because it's a threat to these financial institutions. Good thing in my country there are banks that are still accepting bitcoin transactions.

[De4ted]

This is another issue that will affect the crypto world, well all holders must expect a coins price decrease again but at least we know the reason why the coins will go down on the next days or weeks and we dont have to worry the market will be back to normal again after this struggles and maybe it will pump higher than before after this.

[RamonBTC]

Need more than that. In my observation they can’t fool the masses with this kind of chain emails propaganda’s. They just given their clients the reason to doubts if they only care for them or just being too afraid about what can a cryptocurrency coin can do to the banking institutions.

A form may secretly been sent, but with the presence of crypto users worldwide this won’t be just be private and their desperation would eventually show.

[Wulanayu]

I think it's just a tactic of government that lower-class society does not become a society that turns into an upper class, because they know the positive impact of bitcoin for society, I'm sure the government and the bank come into play in bitcoin or other virtual money.
as long as bitcoin does not harm you why be afraid, do not be provoked by unconfirmed speech.
Bitcoin stands already 9 years and you can see the creator and the history of bitcoin so believe me with proof instead of nonsense.

[Crypdon]

It is because they feel threatened. Within 10 years the number of banks on the high street will be reduced and people take control of their own finances in the form of bitcoin. Banks will only be used by the old timers who are unfamiliar with the new technology. They can keep sending FUD but the crypto takeover is inevitable.

[shone08]

Nothing new I think. The email just reminding you that virtual currencies, including crypto and Bitcoin, are risky and has not been legalize yet by your government. I really don't see any negativity from the email.

I agree with you nothing new with this warning since most people are now accepting crypto currency most bank are warning their client to avoid using this cryptocurrency this indicate that using crypto are risky I already read some article regarding this issues and it will give more negative to cryptoworld since the government just want to regulating cryptocurrency, but they will never destroy bitcoin

[Dudeperfect]

Agree, some banks are blocking the debit and credit cards of the users who are trying to invest in Bitcoin or cryptocurrencies. Technically this is a critical attack on the freedom of users by making efforts to restrict them to use their money. Be trusted banks with a simple philosophy that bank will give us our money whenever we will need it but in such cases bands are actually deciding where you should spend your money and where you should not. I do see this as an opportunity for decentralized payment system to grow with a massive rate of growth in the coming years and I am optimistic about it.

[mintomia199]

The concept of bitcoin and all other crypto currency will change the whole traditional system of bank.SO of course bank always discourage people to stop playing bitcoin or any crypto.I think in some cases banks also buy crypto while discouraging others.

[simpleholmes]

many times I have seen examples like this as banks try to blur the mind of investors with different strategies. This means that they really are concerned from cryptos and if we give more effort they may lose their authority in future.

[BitcoinHodler]

this doesn't sound so bad in my opinion. this is more of a warning and it is a good warning that every bank in any country has already released a long time ago, ever since price went high and media was filled with bitcoin news. they have to warn people because there are always some of them who will throw everything they own at cryptocurrencies and when they lose they lose a lot.

the negativity was from the US banks like GP Morgan which has been attacking bitcoin constantly and went as far as directly calling it "fraud".

[JerryJam]

Banks have a negative attitude towards cryptocurrencies. They see it as their competitor. Banks have always acted in the role of a mediator. And with the spread of cryptocurrencies, they will lose this ability. And over time, they may disappear out of need for Fear for their reputation, they try to convince their customers that bitcoin is bad. Engaged in sending letters of questionable content, they are trying to attract more customers and keep their positions as a leader. I believe that you do not need to believe the dubious propaganda.

[Washball]

Banks in India see cryptocurrencies as a real threat and they will do anything to consolidate their power. They are aware that people could step in and invest in cryptocurrencies, so bank accounts would run empty. By spreading FUD they want to keep people away from cryptocurrencies. But once crypto is accepted in most countries of the world, India cannot afford to stay behind and then it will also accept.

[leland orser]

Many Banks are now banned from using credit CARDS to buy encrypted currencies.
Because the current market for cryptographic money is still not stable enough, lending to people is a risky behavior.

[Rath_]

I am afraid that banks have already started war with us. Many banks in my country terminate the contract with people who buy or sell cryptocurrencies (usually it happens to businesses but consumers are being hurt more and more often). They used to only block the transaction for a couple of hours. They are trying to convince people who don't know much or anything about cryptocurrencies that it is all for their "safety". I think I heard it somewhere before... That's a sign that they understand the threat so they are trying to fight with it.

[n0ne]

Not only from banking network, but from different service based sectors cryptocurrency has been nailed with negative news. This is all because of the growth it attained in a much shorter time period. This is just a small threat which will be easily resolved by the cryptocurrency community.