Indian banks freeze the accounts of cryptocurrency exchanges

Cryptocurrency exchanges in India has faced opposition from the leading financial institutions in the country – several banks, including State Bank of India, HDFC Bank, Axis Bank, Yes Bank and ICICI Bank, froze their accounts, reports the Economic Times (ET).

Failure in the provision of Bank accounts appears to be primarily associated with the lack of banking regulation in this area, especially since most of kryptomere work mainly on borrowed funds. Not all banks have frozen the accounts, most of them have limited the amount of withdrawals in one day.

Despite the fact that the ET lists among the victims of kryptomere Zebpay, Unocoin, CoinSecure and BtcxIndia, others are also experiencing problems.

«The reserve Bank of India did not tell us any instructions about further steps is a cautionary measure on our part», – said the representative of one of the banks. Financial institutions also require kryptomere ensure their bills.

«Last month, banks ask for additional security with the ratio of 1:1» – familiar with the situation source.

Most of the Indian stock exchanges, which had borrowed capital from financial institutions, did it in the hope to increase an equivalent amount in investments in private equity. It is likely that venture capitalists expect the government to clarify the tax and regulatory aspects of the use of cryptocurrency in the country.

The Bank accounts of eight of the exchanges are frozen and may be others.

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