Indian Banks Closing A/cs of Customers Who Buy BTC

[Samyalson]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

[Thanasis]

Just relax,this is not an official announcement from Indian government or from RBI so no need to worry about someone's opinion.And even their restrictions not going to stop people dealing from LBC site.

[Bttzed03]

Yeah, one way or another, the crypto community in India will still find ways to invest/trade crypto. I read before that they're considering allowing crypto but with strict regulations. They should do that.

[veleten]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

there is no court ruling yet , at least nothing official
and I wonder what law are the banks quoting to their customers when closing their accounts?
I'm not a lawyer but  it sounds like it is illegal to the max
in any case, I hope Indian goverment won't do the stupid thing and won't ban cryptocurrencies

[c_atlas]

India has a strong developer presence and plenty of issues with their cash circulation, they should really think twice before they make these types of decisions because it'll lead to smart people (and their money) leaving the country.

[squatz1]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

While this is what people are going to hope to think (at least in our small crypto community, it simply isn't the case), banks are going to be able to have free reign on removing these sorts of people from their banks because they know that they can without too much of an issue. Bitcoin doesn't have the stranglehold over the banking industry that people would hope that they have (yet again, in our community)

Yeah, one way or another, the crypto community in India will still find ways to invest/trade crypto. I read before that they're considering allowing crypto but with strict regulations. They should do that.

This part is true though, probably just with more fees involved as it's going to be p2p.

[eaLiTy]

This part is true though, probably just with more fees involved as it's going to be p2p.

The P2P system is well in place at the moment in some of the exchanges and there is not much of a fee as of now to deal with it, but in the future it might change if more restrictions are in place, but how can they close down accounts of individuals and in the P2P version of things how on earth do they know that i am dealing with crypto unless they ask for the reason why the money is credited which is highly unlikely. I am sure there will be a change in government in the next election and things will change for the better if someone with brains rule the nation.

[Inosend]

That's the same challenge we are facing here in my country banks freezing customers account who buys or sell btc

[KingScorpio]

This is not good for the people in India who want to trade crypto’s. Opening up new bank account outside people’s main bank can be a way to trade crypto.

as soon as people stop calculating in things that are not indian rupias or usd, things get quite tough

[elda34b]

Can Indian use Payeer? AFAIK they support crypto trading and fiat deposit/withdrawal (in USD ofc). It might be an alternative, unless Payeer can't send money to Indian banks (not really following about them tbh).

[libert19]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

there is no court ruling yet , at least nothing official
and I wonder what law are the banks quoting to their customers when closing their accounts?
I'm not a lawyer but  it sounds like it is illegal to the max
in any case, I hope Indian goverment won't do the stupid thing and won't ban cryptocurrencies

Yes, there is no legislature on cryptos, it's just that Indian central bank 'RBI' and as all banks come under it, they made a rule that whoever deals in cryptos will get their account closed.

So it's central bank thing.

[Marlo Stanfield]

It seems like lots of banks are closing accounts for crypto related activity all over the world. If it continues like this and more and more banks keep doing it, it could slow down the growth or at least have a sort of chilling effect on it.

[Kakmakr]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

Obviously they do not know that or they think the impact of that would be negligible. A lot of people will not have the "contacts" in other countries to convert the bitcoins for them or they think people will not go through all that trouble to do it.

The Chinese government also made the same mistake with the miners and a lot of them relocated their whole mining farm to a Bitcoin friendly country, when China restricted them. 

Loads of people have friends and partners, working in other countries. 

[kaisa]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

Bitcoin will not be friendly with the central bank, even some central banks are trying to manipulate the price of bitcoin through investment institutions. I saw that RBI was not the only bank that carried out a similar policy, there were many countries that banned crypto, but I heard that many companies began to look at cryptocurrency as part of the investment, India also did that.

[Indrawan77]

It seems like lots of banks are closing accounts for crypto related activity all over the world. If it continues like this and more and more banks keep doing it, it could slow down the growth or at least have a sort of chilling effect on it.

Some bankers are afraid they are going to lose their job, and the government doesn't want to bother to learn about crypto so the easiest solution is to ban, for developing country crypto could be the side income to help their economic, and I agree this news could make impact on the crypto price, if the banning continues then it could halt the crypto growth

[veleten]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

Bitcoin will not be friendly with the central bank, even some central banks are trying to manipulate the price of bitcoin through investment institutions. I saw that RBI was not the only bank that carried out a similar policy, there were many countries that banned crypto, but I heard that many companies began to look at cryptocurrency as part of the investment, India also did that.

India conisdered introducing blockchain to help fight corruption
looks like the goverment is not very interested in this anymore
aand yes, central banks are against cryptocurrencies and in a country like India it is way easier to apply pressure
to not allow even the attempts to legalise bitcoins, I fear this long story will have a sad ending for India

[superstarbtc]

some banks are on scrutiny of using bank accounts mostly the exchangers have given data to banks so now they are taking action

[BitHodler]

India conisdered introducing blockchain to help fight corruption
looks like the goverment is not very interested in this anymore

One of the most corrupt countries doesn't see much value in using blockchain technology to fight corruption, sounds about right. Governments rule by breaking their own laws, so why should they try to implement something to fight it?

They will run on private blockchains without anyone knowing. For you nothing will change since the services they offer are still the same, but everything on their end becomes more efficient and easier to cheat.

I never believed that corporate or governmental blockchains have it in them to prevent corruption. It's a tool that allows them to become more crooked than ever before. You really need decentralized blockchains for that.

[Indamuck]

If enough people leave this bank then they will change their policy.  The power is held by the customers if enough of them are united.

Credit card companies tried to do the same thing with coinbase and many customers left their service and signed up for a different card instead.

[squatter]

https://cryptomenow.com/india-central-bank-strengthens-bitcoin-ban-legalization-plans-scrapped/

Surely every country knows that restricting and banning crypto will lead to an outflow of money from the country.

While this is what people are going to hope to think (at least in our small crypto community, it simply isn't the case), banks are going to be able to have free reign on removing these sorts of people from their banks because they know that they can without too much of an issue. Bitcoin doesn't have the stranglehold over the banking industry that people would hope that they have (yet again, in our community)

It's not surprising and it's not restricted to India. There's been lots of discussion about this among US users and traders going back several years. I personally know two people who have had bank accounts closed, presumably because of high volume activity linked to Bitcoin exchanges.

It even makes sense. Think about it: If you're a conservative bank and you have no idea how seriously Bitcoin exchanges are enforcing AML/KYC laws, would you want those customers moving loads of money through your bank? Probably not, because that opens you up to liability for AML violations. These days, banks are increasingly expected not only to know their customers, but to know their customers' customers.