In the aftermath of Mahindra Kotak, India’s second largest private sector bank threatening customers to close their bank accounts amid speculations of cryptocurrency transactions, Indian crypto user base has been resorting to a rather cheeky technique to avoid getting their accounts shut down as stringency towards cryptos becomes increasingly imposed by the country’s central bank, the RBI.
The catch with banks finding about accounts that have been associated with crypto trades is by looking at the payment remarks of transactions. These transactions are subjected to specific words, such as Bitcoin or crypto or any other term related to the digital form of assets, which is scrutinized and caught by banking officials. Hence, Indian crypto users are now avoiding putting any such terms in their payment remarks which would hint towards a crypto transaction. This way, these accounts and subsequent payments/transactions do not come under the microscope.
Other tips coming out of India’s crypto Twitter are to use P2P transactions without writing anything related to crypto in the payment remarks and to avoid making large transactions. However, the effect this notion is having over the crypto space as a whole is alarming, both for the banks and for the people. Talking to BlockPublisher, Indian Twitter influencer and crypto bull @DeciCryptoHodlr said that Indians are adaptable to such strenuous situations and will go all the way into finding prevalent grounds for crypto in India. She stated:
Indians are extremely adaptable. We’re known for ‘the jugaad’. That’s what many of the cryptocurrency exchange did when RBI released a notice regarding barring banks from providing services to cryoto based companies.
She confirmed that Indians are resorting to using unnamed P2P transactions to transact in cryptocurrencies to get around the regulations placed by the Reserve Bank of India. She also affirmed her belief in the space and said:
Indian exchanges started adopting the peer to peer model. While the trading volume did go down due to this, the interest has never died down. Indians are still finding ways to circumvent the restrictions.
#Indiawantscrypto is a popular hashtag in indian cryptotwitter which shows how passionately people are supporting cryptocurrencies.
Meanwhile, what effects these restrictions have on the crypto space as a whole is yet to be seen. Nonetheless, the anti-narrative set against crypto seems to be strengthening. On that note, however, Forbes Finance Council member and crypto enthusiast David Gokhshtein remained bullish spoke of the need for banks to come out of this conundrum. He said:
The case only backfires on the banks. The banking institutions need to find a way to adapt rather than to take such steps.
Will we see India come out of this relapse and adopt crypto as a world leader in technology or will the pressure test continue? Either way, one can be assured that these Indians will ‘Jugaad’ their way out.