Apart from mention of Crypto in remarks, bank can also get customer data from exchanges directly or indirectly (through agencies). This is why it is better to avoid centralized KYC exchanges for FIAT to Crypto conversion or vice versa. Exchanges like HodlHodl.com, LocalEthereum.com and local.Bitcoin.com enables one to trade without providing KYC to a centralized repository.
If that's the case then I think it's wrong because it clearly indicates that the exchanges are selling user data to banks.
I don't think this must be the case because by doing this, exchanges are losing their own customers so why would they do something resulting in their own losses ?
Despite all of this, if exchanges are selling user data to banks then it's better we stay away from such exchanges.
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Income Tax department conducts raids at nine Bitcoin exchanges across IndiaFeb 9, 2018:
India’s Tax Department Is Sending Notices to Crypto InvestorsCan you please connect the dots?It's obvious that if you'd be raided, you'd either try to settle things down the roof by trying to bribe the officials (not the higher ones but those who come to raid you), or you'd just show all the details to get your side safe while fucking the privacy of all those who trusted you while dealing with you. This actually kills TRUST between people and big institutions, but the problem here is, after these consequences such people (who believe they were betrayed) go and try their hands on direct P2P trading where the chances of being scammed are relatively higher than being scammed while dealing over an exchange. And when it's crypto which caught a lot of heat not just as a talkative debate but an extremely trending topic being discussed in a country, it was obvious that the raids were going to be conducted. Still, these are not just exchanges but their own finances too which gave these raid guys a clue about their possible dealings in crypto.
