Tips to avoid bank freeze and Lien

[Bitcoin Smith]

I just got the idea to write how people can stay away from bank freeze issue which is by far the most serious issue with Indian crypto users after reading a thread on reddit and I feel that is incomplete so I am writing things which I feel is safe way so any of you guys can add our tips too.

1. If you want sell your BTC or any crypto for INR avoid payment modes like IMPS or UPI platforms which often end up as bank freeze or lien.
2. Consider the Cash Deposit (CDM) which mean the buyer will directly deposit funds in your bank account so there is no trail of laundering here.
3. You can find CDM offers but with premium price which is worth if you don't want your bank account to get locked.
4. Never trade with anyone in person like f2f or if they invite you to telegram or whatsapp after a few successful trades on p2p platforms.
5. Finally use separate bank account for crypto trading and try to keep it's balance close to zero.

[henmark]

Consider the Cash Deposit (CDM) which mean the buyer will directly deposit funds in your bank account so there is no trail of laundering here.

Frequent cash deposit will trigger other questions? Like, if cash deposit/withdraw amounts exceeding 10 lakh in a financial year may get reported to income tax authorities by bank. Similarly we cannot accept cash deposit higher than 50k rupees without PAN. (Anyone may deposit cash up to 50k rupees in bank account but person to person cash transaction should be lesser than 20k).

Still I agree that receiving in cash must be safer in terms of preventing all traces of where your money coming from.

Finally use separate bank account for crypto trading and try to keep it's balance close to zero.

This must be a wise suggestion. These days we could open a new bank account without visiting branches. So, having a dedicated bank account only for crypto P2P trades is easier and must be having big positive for not getting your other funds on any unexpected event.

[Bitcoin Smith]

Consider the Cash Deposit (CDM) which mean the buyer will directly deposit funds in your bank account so there is no trail of laundering here.

Frequent cash deposit will trigger other questions? Like, if cash deposit/withdraw amounts exceeding 10 lakh in a financial year may get reported to income tax authorities by bank. Similarly we cannot accept cash deposit higher than 50k rupees without PAN. (Anyone may deposit cash up to 50k rupees in bank account but person to person cash transaction should be lesser than 20k).

Still I agree that receiving in cash must be safer in terms of preventing all traces of where your money coming from.

Banks no need to report them since PAN is linked with bank accounts the government and IT can track anyone's financial record of all their banks combined in just a single click. But it is common that they will likely to track user who receive lump sum like one big deposit of 10L or anything above 25L combined in a financial year, but those risks are none compared to losing our bank account with all the balance in it.

And we all have family members who got bank account and may not receive much deposit other than government relief, so we can use theirs as well to increase the limit.

~
I agree with this still I may go for trading outside the P2P platform but in affordable level. This is purely depends on your risk appetite. This helped me when a platform got sudden shutdown. I am not recommending to do so, but wanted to share that there are still honest people in P2P space as well.

I wouldn't because even if I have done over 100 successful trades with no redflag at all with someone still they can simply choose to block me once we went outside the platform and there is no middlemen to handle if there's a dispute. You can consider if they are willing to go first and deposit funds in bank then you can move crypto to them.