Indian Bank HDFC Issues Negativity-Laden Emails to Customers Using Cryptocurrencies
India’s crypto dilemma does not seem to end as the delays in finalizing regulations were followed by a delay in the judgment over various impending cases in the Supreme court related to crypto use.
After the 29th of March hearing was postponed regarding the finalization of crypto regulation by the finance ministry, the crypto community faced another setback when the Reserve Bank of India did not consider any crypto in its regulatory sandbox programme.
Now, the latest drama includes a private sector bank The Housing Development Finance Corporation Ltd [HDFC] sending threatening emails to its customers against the use of crypto by citing the ruling by RBI. The email read,
“We have observed that Virtual Currency transactions are reflected in your account and, as per RBI guidelines it is not permitted. Banks are advised to exercise due diligence by closely examining the transactions carried out in the account on an ongoing basis to caution users, holders and traders of Virtual Currencies (VCs) including Bitcoins regarding risks.”
The Reserve Bank of India in its April circular last year put a complete banking ban on crypto use, which means to no central government authorized banks can provide its services to any crypto oriented business.
However, most of the population has interpreted the RBI circular as a complete ban just like the HDFC bank, which is absolutely wrong. There is no ban or screening on personal crypto trading which many in the country does. This makes the email sent by the bank to its consumers totally against the law, as the bank is quoting RBI wrong.
HDFC can go as far as not providing their service to the customer, but what they are doing is absolutely wrong, and if the consumers to whom the emails have been sent, knows the law, then they should approach the court against the threatening.
India and It's Passive Stance Would Keep It Under The Third World Country Tag
India has a country has a ton of potential and the resources to become world leaders, however, the politicians in the country have let it down on major counts.
Take the current regulations scenario, where the drafting committee and RBI has assured the Supreme court of India that they have almost finalized the framework several times, but when it came to the hearing it got postponed as usual. Indian Judiciary is not well-known for being particularly swift.
Even during the ongoing tussle between the governance and crypto community, the drafting committee never even tried getting someone from the crypto world on-board to help them understand what crypto promises and why it is the future.
And looking at the ongoing passive stance of the leaders and policy makers up top, India would definitely miss the blockchain and crypto race as it did during the dot com boom.
While many other countries are also in the process of making consumer friendly crypto regulations, but most of the policymakers are not as ignorant as Indian authorities, where some Indian government officials with no knowledge on how crypto works are going around telling cryptocurrencies are Ponzi scheme. And, that's how most of the policymakers are, thus the future of crypto certainly looks doomed as of now.
However, that has not stopped crypto proponents in India to raise their voice and concern over the regulation delays, there have been roadshows leading up to the 29th March hearing, there have been constant efforts on Twitter as well. Whether this effort can ring a bell in the policymaker’s ears, only time would tell.
India with 1.3 billion population where the majority falls under the criteria of youths surely possess both technical and human resources to make the country a hub for crypto progress.
It is already proving to be a globalization hub, with major tech firms like Apple, Samsung, Google and many more curtailing India specific plans and same is possible for crypto and blockchain as well. Hopefully, the government gets to its senses before it has already missed the bandwagon.