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Banks are not supporting Cryptocurrencies, But why?

According to members of the local crypto community, Indian crypto exchanges are stopping transfers to crypto-related accounts, so Indian crypto exchanges are struggling to come.

Many Banks are not Supporting Cryptocurrencies Exchange!

Crypto traders are also receiving notifications about crypto-related transactions from banks and warnings that their accounts may be closed, he said.

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In recent weeks, several lenders, including HDFC Bank and State Bank of India, had officially flagged transactions related to the purchase of cryptocurrency, warning customers of sanctions including permanent closure of accounts.

Paytm Bank to End support for the Crypto Exchange!

Paytm Payments Bank is yet to officially announce the end of support for the cryptocurrency exchange on its platform.

Banks-are-not-in-support-of-Crypto-Exchange
Banks-are-not-in-support-of-Crypto-Exchange

It also did not explain the reason for its stand. We reached out to Paytm, and haven’t gotten through to the same yet.

In April 2018, the Reserve Bank of India (RBI) directed all regulated entities, including banks, not to provide services to businesses dealing in virtual currencies such as bitcoin,

In order to protect consumer interests and check money laundering. Can go The ban caused a drop in trading volume and exchanges closed their businesses.

Reserve Bank of India asks banks to stay away from Cryptocurrencies!

Earlier this month, the RBI had informally asked banks to stay away from businesses dealing in cryptocurrencies.

ICICI Bank, Yes Bank, and Paytm Payments Bank are among the prominent names to break with the sector. In its email to customers, SBI said,

“The Reserve Bank of India has not granted any license or authorization to entities regulated by them to operate in cryptocurrency schemes or any other form of virtual currencies such as bitcoin.”

What is the Reason for Banks not supporting Crypto?

Governments control fiat currencies. They use central banks to issue or liquidate money out of thin air using what is known as monetary policy to exert economic influence.

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They also decide how fiat currencies can be transferred, enable them to track currency movement, decide who profits from that movement, collect taxes on it, and criminal activity. detects.

All this control is lost when non-governmental bodies create their own currencies. Bitcoin users are not required to have an existing banking system.

Currency is created in cyberspace when so-called “miners” use the power of their computers to solve complex algorithms that act as verification for bitcoin transactions.

Their reward is a payment with cyber currency, which is stored digitally and passed between buyers and sellers without the need for middlemen.

On a smaller scale, airlines also offer reward miles function, which helps travelers buy plane tickets, hotel rooms, and other items. Items that use airline miles as virtual currency.

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