The largest mobile exchange network in India, Paytm, allegedly freezes users’ bank accounts accused of crypt trading, while it was legalistic in India for cryptocurrencies, like bitcoin. The country has no legislative structure for cryptocurrencies but the government says a “awaits approval” crypto bill.
Banks Also Block Crypto Banking Accounts
A confirmed blocking of customer accounts suspected of trading cryptocurrencies was Paytm Payments Bank, identifying itself as the “biggest digital bank in India with 58 million account owners.” At about 450 million registered users, Paytm is India’s largest mobile business site. One97 Communications Ltd., founded by Vijay Shekhar Sharma, owns the brand. Coin Crunch announced Monday to the local Indian news outlet:
Many users are reporting Paytm is freezing bank accounts of Paytm payments bank account holders with suspicion of crypto trading.
Paytm provides INR and INR banking services, according to the report. “Users can use the P2P or spot to receive money or send fiat to exchange deposits. And the accounts of those banks are frozen.
Paytm is not the only bank with a crisis trading problem. The third-largest private sector bank in India, Axis Bank, reportedly called customers last month, asking if they had used cryptocurrency exchange accounts. The bank also warned of its blocking of accounts used to do so. Several customers have suggested that they were asked to sign a declaration form indicating their “no contract with some kind of transactions in virtual currency” on their bank accounts.
Until the central bank circular quashed the Supreme Court in March, banks closed accounts that were allegedly used for crypto-trading. Banks were prohibited to provide a service to crypto-dealing organizations by the Reserve Bank of India (RBI) circular. Once the ban on RBI was lifted, many banks reportedly declined, including exchanges, to work with cryptographic companies and said they waited for the Central Bank’s other instructions.
The RBI has consistently confirmed that cryptocurrency in India has not prohibited. This expressly stated, in a response to an application on Right to Information (RTI), that crypto-exchanges, companies or traders in the country are not banned. Noted by Coin Crunch:
Crypto trading is not illegal. Banks are not restricted. However banks can act in their own interest, so users were advised to take caution.