- Indian banks are asking clients to clarify crypto-related activities.
- Failure to comply could lead to account closure or seizure.
- The increased scrutiny comes as India mulls a complete cryptocurrency ban.
Indian banks tightened their scrutiny over crypto-related accounts. Some banks started asking clients to clarify their account activities.
These banks include HDFC Bank, HSBC, Citibank, ICICI Bank, and Axis Bank.
The banks also warned that clients’ failure to comply could lead them to suspend or even seize their accounts. The news has been a fresh blow to the embattled Indian crypto sphere.
The Supreme Court of India set aside a prior decision by the Reserve Bank to ban crypto banking accounts. However, there have been recent reports that the Indian regime is mulling over a total crypto ban. However, the ban seems a bit pious since India is working on issuing a Central Bank Digital Currency (CBDC).
The looming ban seems to be the reason banks are creating distance from crypto activities.
Nischal Shetty, Warzirx CEO noted,
Banning it (crypto) would be like banning the Internet in the 1990s and will set India back by years while the rest of the world moves forward.
India was one of the most active crypto hubs in the world prior to the ban. Shetty added that “Crypto industry is open to being regulated, but a blanket ban is something that will harm the entire country’s financial and technology ecosystem.”