In the past couple of years, cryptocurrency investors and traders have become one of the most concerning topics for regulatory authorities all over the world. The same is the case in India as the Indian government is currently in the process of finding out what it is going to do with them.
One of the latest developments in the Indian cryptocurrency sector is the consideration of banning or legalizing cryptocurrencies in the country. The decision is currently underway at the Indian Parliament in the Lok Sabha sessions.
While the decision is being considered at Parliament, the private banks in India have also started taking some initiatives around cryptocurrencies. According to one of the news agency firms in India “Economic Times”, the private banks in India have started sending out notices to their customers.
The customers have revealed that they have started receiving these notices from the banks inquiring about cryptocurrencies. The notices are requesting the customers to reveal their transaction details around cryptocurrencies. In some instances, the banks have even asked the customers to visit the local branch of the bank to discuss the matter.
So far, the banks that have been highlighted by the Economic Times include Citi, HSBC, and HDFC banks. It has been revealed that if the customers fail to answer the notifications, then there may be consequences involved for not complying.
The banks have intimated that not complying with the request may result in the account being seized or suspended. One of the letters shared by the customers who received the notification provides clarity on the matter.
The letter states that they have been given clear instructions by the regulators to comply with the regulatory guidelines. The guidelines require them to keep a close eye on the transactions and examine their nature. The banks are also intimating their users over the usage and acquisition of cryptocurrencies and how they deal with them.
It was back in 2020 when the Supreme Court of India had lifted the implementation that was imposed by the Reserve Bank of India (RBI). As per the implementation, the banks in the country were to stop the distribution and provision of services to firms that were related to cryptocurrencies.
That was for the first time the cryptocurrency industry in the country had hoped for a brighter future. The crypto-sector had started thriving in the country and more exchanges were being formed to deal with them.
However, the Reserve Bank of India (RBI) filed a new ruling at the Indian Parliament proposing to fully ban cryptocurrencies in the country. Furthermore, the RBI proposed that it was going to provide a framework for the integration of digital assets (CBDC).