It seems the cryptocurrency situation in India is not evolving in a favorable direction. The country’s government has made it clear it plans to regulate cryptocurrencies and digital assets. For now, it remains unclear what that will entail exactly, although it probably won’t be positive. Indian banks, on the other hand, are continuing to squeeze cryptocurrency users. Citibank India is the latest company to do so, which is pretty worrisome for anyone in the country with an interest in Bitcoin.
Citibank India Joins a Growing List of Anti-Bitcoin Banks
No one will deny the cryptocurrency industry has sparked much debate. Not all of these discussions will lead to positive outcomes, though. Right now, things are not looking all that great in India. With the country’s government currently looking into introducing regulation, things could head in either direction over the coming months.
Banks in the country are starting to take matters into their own hands, and it’s almost impossible for Indian consumers to buy cryptocurrency right now. Citibank India is the latest institution to prevent users from buying Bitcoin using debit or credit cards. It is a trend we have seen materialize in countries around the world over the past few weeks.
In an email sent to its customers, Citibank India explained the situation. The institution is mainly concerned over the economic, financial, and legal risks associated with Bitcoin and other cryptocurrencies. For now, they have removed the option to purchase Bitcoin and similar currencies with a credit or debit card. It is unclear if the feature will be implemented again in the future, but for now, that seems highly unlikely.
Citibank has taken a similar course of action in the United States as well. It is not impossible that they will limit the functionality of their payment cards across the globe in the weeks and months to come. This further confirms that people who trust banks with their money will essentially be told what they can and cannot buy with their own money. It is a very disturbing situation, yet one that will only grow worse over time, by the look of things.
Purchasing Bitcoin and other cryptocurrencies with a credit or debit card has always been considered somewhat of a problem. Even though payment cards are both useful and popular right now, they are also some of the biggest facilitators of online payment fraud in this day and age. With Bitcoin, the risk of fraud is only greater. Recipients of Bitcoin payments are subject to chargebacks, as digital goods are not covered by any major card issuer, especially not when it comes to cryptocurrencies.
For now, we will have to wait and see what the future holds in India. With the government still contemplating how to regulate the industry, things could head in either direction from here. It is evident there is a booming cryptocurrency industry in this country, but with major opposition from banks and other financial institutions, it will only become more difficult to get in on the action. It is a very volatile situation well worth keeping an eye on right now.