Cryptocurrency investors in a fix as banks stop taking deposits from wallets

Moneycontrol News

A number of retail investors who had purchased cryptocurrencies such as Bitcoin have been left in a bind as banks are not allowing them to deposit money earned from their trading on exchange platforms, according to a report by BusinessLine.

According to the report, investors said that they were unable to either trade on some of the bitcoin exchanges or withdraw the money they had invested into their bank accounts.
The investors further said that they are now finding it difficult to file a complaint as the banks as well as the bitcoin exchanges are passing the buck to each other over the issue.

Speaking to the newspaper, Vandana Tiwari, an investor from Varanasi said, "I had written to the exchange but they said that they have not received the money while my bank statement shows that the money was credited. Now, I don’t know whom to approach. Banks are also not giving any clarification."

Another customer from Delhi told the newspaper that he was unable to withdraw his balance from his bitcoin account, which is asking him to verify his bank account.

Blockchain and the newly formed industry body representing crypto-currency exchanges Cryptocurrency Committee of India told the newspaper, "The recent knee-jerk actions by a few banks in terms of closing bank accounts of some cryptocurrency exchanges have led to hardship to these citizens."

It further said that it will soon be holding talks with the banks to make them understand more about the emerging sector and make them aware of harmful effects of their knee-jerk reactions.

Moneycontrol had earlier reported that top banks in the country had suspended some accounts of major Bitcoin exchanges in India on suspicion of dubious transactions