Crypto Exchanges And Crypto Users In India Are Facing Banking Issues

Crypto currencies are facing turbulent times in India and there is no legal certainty over the use, trade and dealing of crypto currencies in India. There are strong hints from Indian govt and RBI that private crypto currencies may be banned in India. This is done to promote India’s own digital currency as may be issued by RBI and Indian govt in future.

Supreme Court of India in its March 2020 decision has held that RBI has power to regulate cryptocurrencies in India if a law made by Parliament supports it. RBI cannot regulate cryptocurrencies by using circulars as that would violate Article 19(1)(g) of the Constitution of India. Now Parliament is in the process of making a law on crypto currencies that would most likely ban use, trading and possession of crypto currencies in India.

But the background work has already started in this regard with issuance of many statements from RBI and Indian govt suggesting possible ban on private crypto currencies in India. Even today dealing in crypto currencies falls in a grey area and crypto exchanges and crypto users must be very cautious while dealing with them. They must fully comply with the techno legal compliance requirements of various Indian laws that are very complicated to understand and mange. Their safest bet is to use the online dispute resolution (ODR) Portal of Perry4Law Organisation (P4LO) to manage compliance with Internet Intermediary Rules 2021 and other laws of India. The ODR Portal would also help them to comply with global compliance requirements as it is supported by TeleLaw startup and portal.

Meanwhile, RBI and Indian govt is further tightening the noose around crypto stakeholders in India. RBI has passed guidelines to the banks to monitor the crypto transactions closely and take strict action on them. Some of the top Indian crypto exchanges are facing issues with bank transfers and their users are not able to trade bitcoins as the bank is not approving the payment. Crypto exchanges are complaining that they have been facing issues as the banks are not allowing them to access the APIs and get the deposits made by customers. The banks with which the exchanges were working earlier suddenly stopped offering the services.

Banks are not only creating issues for the crypto exchanges, but they are also targeting the customers who are using cryptocurrencies or trading in them. Many users who have been investing in cryptocurrencies have received a letter from the bank that their account may get closed in 30 days. Several banks have sent inquiry letters to the customers asking about all their crypto purchases and activities. The new bank policies have created a lot of issues for the crypto investors as their future plan will surely be affected by the strict policies of the banks against cryptocurrencies.

If you are a crypto exchange or a crypto user, simply create an ODR Request at the ODR Portal and lodge your complaint, grievance or dispute with the ODR Portal. We would handle the same on your behalf free of cost and with nominal administrative fee. There is no sense in putting yourself or the crypto users of the crypto exchanges at legal risks of punishment and prosecution. Let the ODR Portal and TeleLaw manage all your techno legal regulatory compliance in India and other jurisdictions.