Indian Banks Suspend Digital Currency Exchange Accounts, Which Could Force Closingsbr>
Several major bitcoin exchanges in India have had their bank accounts suspended over alleged misrepresentations on their use. The suspensions could potentially force them out of business.
Among the exchanges affected: Zebpay, Unocoin, and CoinSecure. The State Bank of India, Axis Bank, HDFC, ICICI and Yes bank are among the lenders who have suspended accounts of cryptocurrency exchanges, according to a report from the Economic Times of India.
The report cited unnamed sources and said the banks have asked for additional collateral from exchanges on their borrowings. Cash withdrawals have also been limited to the exchanges.
Cryptocurrency is unregulated in India and has been subjected to widely divergent views within the government. Some officials are backers, while others condemn bitcoin and other digital currency and call for greater regulation. Each week, several differing versions of positive sentiments clash with negative attacks emphasizing the potential for terrorist money laundering, fraud and other activities.
Indian banks are required to file Suspicious Transaction Reports with the Financial Intelligence Unit.