Bitcoin has been facing a lot of fall in its worth since the year started. Last week, it faced a major blow and went down to $10,000. Another drop faced by cryptocurrency was observed when various banks across India started a crackdown against the cryptocurrencies trade. Bitcoin was initially trading at $12800 and dropped to $12000 and then further went down to $11600.
Many big names in the banking sector of India including State Bank of India (SBI), Axis Bank, HDFC Bank, ICICI Bank, and Yes Bank took strict actions against crypto exchanges. According to reports, all of these banks either suspended the accounts or have intensely limited the functionality of the accounts. The report said that the banks have been observing suspicious transactions from these accounts.
A few weeks ago, Koinex, another one of the emerging cryptocurrencies in Mumbai, said that Indian banks were creating delays and problems in transactions. A blog post states, “In the past few days, many of our users have faced difficulties with Indian Rupee (INR) withdrawals on Koinex. A tussle between our payment service partner and their bank has caused an indefinite delay in the settlement of a large portion of deposits to Koinex in the past two weeks.”
Although this crackdown by the banks are the first time an imposition has been applied on the cryptocurrencies. However, the Indian ministry of finance gave very strict statements against cryptocurrencies. He called Bitcoin and altcoin as Ponzi Schemes. The Indian ministry of finance also gave an awareness note to its citizens saying that the worth of cryptocurrency is volatile only because of the speculations and the high risk of making an investment in them.