Cryptocurrency is facing global obstacles and trust issues from the government authorities, legislators, and financial institutions.
In recent events, one of the largest financial institutions of India, ICICI Bank has enhanced its crackdown on the crypto trade.
It has requested the customers not to invest their foreign remittances in crypto assets. The intelligent, tech-savvy, and secular Indians are already facing a religiously extremist regime. Now, they will get deprived of the right to invest according to their free will too.
A recent report published in “The Economic Times” says that ICICI Bank has revised their ‘retail outward remittance application’ accordingly. This form now includes a proclamation saying the following:
“Remittance is not for purchase/investment of bitcoin/ cryptocurrencies/virtual/digital currencies (like ripple, litecoin, ethereum, dash, dogecoin, peercoin, primecoin, chinacoin, ven bitcoin or any other type of virtual currency).”
Users will now need to sign this declaration who aim to transfer money overseas. This declaration also deters them from investing in “shares of any other capital instrument of a company dealing in bitcoin/virtual /cryptocurrencies”. It just doesn’t stop here. But it also requires a further declaration that the source of any funds being remitted is not the reclamation of crypto investments. This development surfaced many weeks after the major lenders halted banking services to local crypto exchanges. It has completely shut down the doors of overseas markets for traders.
We have been hearing that every day that how different countries around the world are closing in cryptocurrencies. For example, Russia; whom India used to be a very close ally of, is going to legislate regulations, allowing to control and confiscate digital assets. Russia wants to incorporate such laws in the wake of threats of crypto-linked crimes like corruption and bribery.
In another example, one of the top banks in the UK; Barclays, stopped payments to Binance; a major crypto exchange. Other top banks in the UK like Santander also followed Barclay’s footsteps, blocking payments to Binance. The banks responded the reason is the protection of customer’s money and to shield them from any scams.
Two months ago, in May, China also banned payment companies and other financial institutions. The ban prohibits the provision of any kind of services related to cryptocurrency transactions. China issued a warning to investors against crypto trading. This ban prohibits online payment channels, banks, and any such institutions from providing any service which involves cryptocurrency. Services include such as trading, clearing settlements, and registration.
Although the Reserve Bank of India (RBI) passed a statement on May 31st saying that lenders cannot quote its crypto-banking ban. It was imposed back in Apr 2018 to support the crypto community. However, numerous lenders have ceased net banking services to traders involved in cryptocurrencies.
The regulative scene, however, remains so uncertain and blurry during such a situation. According to a report by CNBC TV 18, the Indian government may present the bill of cryptocurrency and regulation of official digital currency for 2021. That shall be during monsoon sessions starting 19th July 2021.