Banks in India have been closing the accounts of customers they believe have made transactions involving cryptocurrencies. The majority of crypto users in the country, however, have reportedly found a way to avoid their accounts being closed by their banks which are complying with the crypto banking ban imposed by the country’s central bank.
Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
Avoiding Problems With Banks
Reports of banks in India closing customer accounts with cryptocurrency-related transactions have been on the rise. Banks cite compliance with the circular issued by the country’s central bank, the Reserve Bank of India (RBI), that bans them from providing services to customers and businesses dealing with cryptocurrencies.
A spokesperson for local cryptocurrency exchange Instashift told news.Bitcoin.com that banks have been closing the accounts of customers when they find any cryptocurrency-related words such as “bitcoin” in transaction remarks. He clarified that if a customer’s bank account “comes under scrutiny and the bank officers read the crypto keywords in remarks” then the bank account will be closed.
The CEO of crypto exchange Wazirx, Nischal Shetty, shared with news.Bitcoin.com on Tuesday that the:
Majority of the people understand not to enter such terms in the remarks. So simply avoiding entering anything related to crypto in the payment remarks is more than enough to avoid any problems from banks. There’s no other way for banks to know if a P2P transaction was done to transact in crypto.
Other Indian crypto users agree with this strategy. Twitter user Cryptomaniac advised, “Use P2P without writing anything related to crypto in remarks. And don’t do heavy transactions.” P2P is the exchange-escrowed peer-to-peer style of trading which has been growing in popularity since the RBI ban. Most crypto exchanges in India offer this type of trading. Another Twitter user, Vivekmacha, agreed and wrote that “If we use P2P they can’t track us,” emphasizing the importance of not writing any crypto-related terms such as bitcoin or BTC in remarks when making transactions.
The Instashift spokesperson explained that crypto users that have their bank accounts closed just “open a fresh account in another bank” and continue to trade without “using any crypto terms for transactions,” emphasizing:
It’s easy to open a new account for a person in India & banks also welcome people to open accounts.
He noted that “no matter how many accounts you open, all bank accounts get linked with your PAN card” which he said is similar to the social security number used in the U.S.
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