Large players in the banking sector have suspended a few accounts of the major bitcoin exchanges in India on an intuition of doubtful transactions.
Three people with info on the issue, spoke to Economic Times, confirming that banks sought additional collateral from promoters of exchanges on borrowing and capped cash withdrawals from the few operational accounts. The banks are inspecting current accounts of top Bitcoin platforms in the country, said another person.
Although most of the exchanges did not elicit any response, Sathvik Vishwanath, promoter of Unocoin, denied the verdict saying, "The banks have not contacted the company or the promoters regarding the actions you have mentioned".
Other exchanges include Zebpay, BTCXIndia and Coinsecure did not respond. On the other end, SBI, Axis Bank, YES Bank, ICICI and HDFC banks have not replied to the email asking for more detail. The top ten exchanges, according to an industry figure, are estimated to have revenues of almost Rs 40,000 crore.
"These exchanges tend to show the total volumes both on buying and selling side as their revenue".
The leading cryptocurrency bitcoin is neither illegal nor legal tender in India and largely unregulated.
Fears are now growing the India's crackdown on bitcoin could have a far-reaching impact on the global crypto market. Additionally, the Ministry of Finance referred to Bitcoin as a Ponzi scheme before the end of a year ago.
The Indian Income Tax Department is keeping a watch on crypto activities in the country and in January 2018 raided crypto exchanges. Some officials are backers, while others condemn bitcoin and other digital currency and call for greater regulation.
The tax department also recently sent tax notification to a huge number of people managing in cryptographic money after an across the nation study demonstrated more than United States dollars 3.5 billion (RS 2,234 crore) worth of exchanges have been led over a 17-month time span. young tech-savvy investors, goldsmiths, real estate people and other people are among those put resources into bitcoin and other virtual monetary forms, impose authorities told Reuters in the wake of collecting information from nine trades in Delhi, Mumbai, Bengaluru and Pune.