Indian online bank Digibank has closed down accounts of several people suspected of crypto trading, including that of popular local crypto influencer Indian CryptoGirl, who Tweeted the news.

The crypto owner had Tweeted in the past about messages received from banks to local Indians, warning them that central bank (Reserve Bank of India) rules would lead to banks shutting down accounts suspected of crypto trading.

She made her position clear: “I’ve been a user of DBS’ Digibank for a year. Although I regularly used Kotak Mahindra Bank for my cryptocurrency transactions, I used Digibank only 7 times throughout the year. On January 14th, I received multiple messages from my twitter followers regarding an account closure notice by digibank. I checked my mailbox and found the mail myself.”

In reply to a question, she further said, “Banks have interpreted RBI’s guidelines as per their own convenience. This, however, is tantamount to taking the law in your own hands. RBI has only prohibited banks from working with businesses offering cryptocurrency solutions and NOT individuals from trading cryptocurrencies between them.”

India has been facing a lot of controversy since last year regarding cryptocurrencies. RBI has banned banks from dealing with crypto related transactions. It has even stopped development of its own centrally-backed cryptocurrency.

The issue has been taken up by the local blockchain and crypto association, with the case running in the supreme court. RBI’s stance is that cryptocurrencies provide an easy means of laundering money and helps tax evasion. The industry leaders, however, claim that cryptocurrencies are designed to be censorship resistant and the ban would only lead to a thriving underground marketplace – exactly what the government wants to eliminate.

 

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