Bitcoin India: Oriental Bank of Commerce Will Freeze Accounts of Bitcoin Exchanges & Users!
Once again I'm just highlighting some facts and there's no need to panic if you hold an Oriental Bank of Commerce account in India. If you don't hold an account here but want to know what's going on with other banks, just continue reading.
As you aware, few major Indian banks have imposed restriction on using bank accounts for trading of these crypto-assets. This is a circular issued internally at Oriental Bank of Commerce which shows a worrying trend within some Indian banks which are displaying a hostile behaviour towards cryptocurrencies.
There's no need for a FUD even though this is an aggressive move by the bank to start freezing accounts of cryptocurrency exchanges and users engaged in trading these blockchain based financial assets. They are also preventing any new exchanges or individuals who wish to trade cryptocurrency from operating any accounts in their bank.
Having said that this is not a rising trend amongst all major banks. While some banks have made it harder for the exchanges to operate, some have come forth to ensure their operations go on smoothly as they see this domain as a new avenue for revenue generation.
If you are using Oriental bank exclusively, now is a good time to get a second account with another bank. I despise such a move from banks who are simply a custodian of our money. They do not own it and should not own the rights to tell us how to use our funds. It's a pity that the government is allowing them to form such an internal policy.
Other banks are likely to interpret government warnings in their own ways. The higher the risk averse, the greater the chances they will curb such activity on their banking network.
For now, this is all the info I've got and mainstream media hasn't picked this up yet. So let's see how this one plays out. Meanwhile, sit back, relax and enjoy your trades.
You can read some of these other posts I've authored on the subject matter:
- These Banks Have Banned Cryptocurrency Purchase Through Debit & Credit Cards!
- Will Banksters Ruin Indian Economy?
- Are Banks Part Of The Corrupt Forces That Rule Us?
- Crypto India: Welcome To The Banking Banana Republic!
- Crypto India P2: Banking Banana Republic—What Banks Are For and What They Are Actually Doing!
- Making Sense of Indian Finance Minister's Statement in Parliament—Cryptocurrencies Aren't Banned In India!
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
- Steemit.Chat Contest #17 + Contest #16 Winners Announcement!
- Why You Should Vote For @firepower As Witness—Witness Campaign Post From India!
- India Steem Meetup #4—An AWESOME Meetup In New Delhi—India's Capital and 40+ Attended!
These type of draconian bans are sure signs of desperation. The banks are starting to realize that crypto will only continue to grow, and that their role in the future financial system will be very limited.
FirePower this is not a good news though but only one thing could be done and that is handle the situation very carefully.
I think the bigger problem will be for big exchanges who have accounts with them.
What is the update, now? Any news in the media because that causes the caos?
Yesterday my maternal aunt got a notice from income tax department in Kanpur. Two years ago I created her account in btcxindia exchange but she has not made any investment or transaction on it. Why she has got the notice. She is a housewife. Is there any need to go to income tax office for it or we should ingore it because we have not done any account creation in it. Please clarify sir.
@firepower I think this is just temporary, If Gov. of India is announcing Taxes on Bitcoin, how can any bank do this.
hodl....HODL....HODL
This is a negative development that I hope we don't see followed in other countries. Having said that, I don't believe governments are going to want to give up their control over their money supply so I won't be surprised if this happens elsewhere. Governments are too used to printing money so they can spend what they don't have.
This is sick. And been going on for a while. See this http://corporatebytes.in/after-visa-and-kotak-citibank-also-warns-customers-against-any-circulation-of-cryptocurrency/ - i got an email from my bank (Kotak) a few days as well. They aren't freezing the accounts but a warning was issued!
This will be funny for all of us and unpleasant for banks that did it in just a few years...
I would definitely like to know more.
Because that's quite aggressive, the banks here in Nigeria attempted a similar fit, when MMM (though a ponzi scheme not cryptocurrency) were still fully functional..
Though they claim they are protecting citizens interests, yet in truth they are scared of loosing customers.
Am so with you on this @firepower.. This only shows how these banks are trembling with panic. It's indeed funny how the public doesn't get to use the money they work hard for the way they want to. I credit the banks that are ensuring the smooth operations of cryptocurrency. This indeed is an avenue for revenue generation. And this generation can be used by the government to cover the huge debts and also work on infrastructure. This is a win win for both the people that are reaping huge and the government. And thus the government should step in to halt the banks which are making it harder for the exchanges to operate.