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Cryptocurrency adoption prohibited by Indian banks; force customers to sign contract

Namrata Shukla

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Cryptocurrency adoption prohibited by Indian banks; force customers to sign contract
Source: Pixabay

The Reserve Bank of India, India’s central banking institution had prohibited the banks of the country from providing any assistance or services to cryptocurrency business. Following this, the banks in India are taking things one step ahead by asking customers to sign contracts stating that they will not use cryptocurrencies of any kind as a part of their new terms and conditions of service agreements, reported Bitcoin.com.

The banks are taking such steps to discourage people from adopting cryptocurrency on the whole. According to the reports, the new course of action is forcing the customers to choose between banks and crypto. The adoption of crypto is getting difficult in the country even though many hope to see cryptocurrency overtake the traditional banking system, it is tough to realize this dream due to such stringent actions.

Twitter user, @DesiCryptoHodlr tweeted an image of the terms and conditions required by one of the prominent banks, Kotak Mahindra Bank as an example of the bank’s restrictions. The image says that strict actions will be taken against those who disregard this condition. The user tweeted:

Source: Twitter

Source: Twitter

“Indian Banks now forcefully taking permission from us to ‘reserve right to close our account without further intimation’ if we deal in #cryptocurrency transactions
Ability to decide what to do with our own money is the very reason we need to invest, #BUIDL, & believe in #bitcoin”.

The bank is pressurizing the customers to declare that they “will not deal with any transactions related to Crypto-currency including Bitcoins”. It further states that the bank also reserves the right to close their account if the condition is not followed.

According to reports, similar warnings are displayed on the bank’s ATM screens:

Virtual currencies (VCs) are not legal tender and do not have any regulatory permission or protection in India. We request you not to make transactions involving any VCs from any of your account/s. For any such transactions, the bank shall be acting in accordance with the regulatory guidelines which include closing your account without further intimation.

The bank claims that it is working in accordance with the RBI regulations, and the Twitter user claimed that this is only one example of the many banks following this.





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1 Comment

1 Comment

  1. Avatar

    Alistair Stewart

    January 12, 2019 at 7:11 AM

    This type of coercion and attempts at control by banks demonstrates exactly why we need crypto now and in the future.

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Zcash’s revolutionary blockchain hits first fork in the road; Adamant Capital Founder questions move

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Zcash revolutionary blockchain hits first fork in the road; Adamant Capital founder questions move
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Zcash, the privacy-centric cryptocurrency project, swiftly stole the Libra’s limelight and switched the debate from payments and fiat-backing to blockchain technology and scalability. Lofty ambitions of Zcash aside, the Electric Coin Company’s [ECC] new blockchain has not convinced everyone in the community just yet.

Tuur Demeester, Founding Partner at Adamant Capital, shared his opinion on Zcash’s new crypto-adventure, much to the dismay of the larger ZEC community.  He detailed a list of points surrounding the new project which, in his opinion, “sound horrible.”

Citing a report by Decrypt Media, Demeester highlighted flaws with respect to scalability, similarities in the crypto’s roadmap with other projects and the issue of “sharding.”

Nathan Wilcox, in the aforementioned report, had stated that the new blockchain was developed to make ZEC available to 10 billion customers by 2050; hence, the noted infrastructural improvements to the network. Coupled with the prospects of introducing sharding to “speed up transactions,” a switch was necessary.

Demeester’s primary issue with Zcash’s new blockchain is the introduction of a new coin, following the “implicit admission” that the coin they had, ZEC, was “never scalable” and a jibe at the privacy aspect of it, which the coin’s backers tout often. The lack of privacy transactions usage was described by many as one of the “biggest problems” for Zcash. This was because by default, transactions on Zcash are not set to “private,” unlike Monero [XMR]. In fact, less than 2 percent of all transactions are “fully anonymous.”

The Adamant Capital Founder highlighted its roadmap similarities with Ethereum, especially on the subject of sharding in the blockchain.

Finally, the report, citing Wilcox’s words, said that the ECC and the Zcash Foundation will stop receiving funding from mining rewards in 2020, while not mentioning how the development funding for the new project will come about. Demeester, in his final point of criticism, mentioned this as a “subsidy for ZEC Foundation.”

His full reply stated,

Josh Swihart, VP of Marketing and Business Development at ECC, hit back at Demeester, calling the criticism “wrong and biased.” He said,

“Wrong and biased take. It’s a recognition that bitcoin doesn’t scale and that scalability and privacy are complimentary. Did you watch the session?”





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