Mahindra Kotak, India’s second largest private sector bank has threatened its customers from making cryptocurrency trades. The claim has surfaced after an account holder at Kotak was written a letter to by the bank, claiming that on the suspicion of trade in digital assets, they should close the bank account at the earliest, or that the bank shall be constrained to close the account itself.
The news comes within a period of increased rigidity shown by India towards cryptocurrency. Recently, the Reserve Bank of India (RBI) prohibited banks throughout the country from providing crypto assistance to any services. Hence, banks all over India are now taking steps to discourage people from adopting cryptocurrencies. On the subject, prominent cryptocurrency guru and Senior Market Analyst at eToro Mati Greenspan provided opinion and shared the view that India had recently became more stringent towards crypto. Talking to BlockPublisher, he said:
Some countries are more crypto friendly and some are less. India has been getting progressively less friendly.
Greenspan, a thorough crypto bull and promoter also took to his Twitter feed to post screenshot of the letter written by Kotak Bank to the customer who is alleged to have made crypto transactions.
You don’t get any more desperate than that. pic.twitter.com/uj5IYFmSV9
— Mati Greenspan (@MatiGreenspan) January 13, 2019
On a rather general note, it is not new to see banks attempting to sideline cryptocurrencies. It comes as part of the streamlining process where first, institutions have shown ignorance to digital forms of assets but now are gradually becoming fearsome of its prospects in replacing banks as the system of financing. Mati Greenspan agreed with the notion, that banks are scared of cryptocurrencies now. He said:
It almost looks as if banks are scared of cryptos now.
Moreover, Mahindra Kotak is now sending its clients a primitive of continuity in the form of a checkbox next to a statement that asks the customer to declare that they will not deal in cryptocurrencies and their bank accounts will be closed if they are found to do so.