Some top banks seem to have taken action to crack down on dubious transactions. According to reports, the banks have suspended some accounts of major bitcoin exchanges.
The latest development was confirmed by at least three people, reports Economic Times. Major banks like State Bank of India, Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have suspended some of the accounts that belong to major Bitcoin exchanges in India.
The report further reveals that the banks have sought additional security damage for the dishonest transactions from the promoters of such exchanges spread on borrowings. The banks have also ceased withdrawals from the accounts that are still operational.
A person, who is well-known with the development, told ET that the banks have been demanding for more collateral with 1:1 ratio since last month.
Currently, the banks are involved in probing the current accounts owned by top Bitcoin exchanges, confirmed another person who revealed to ET on conditions of anonymity.
The banks have initiated the action at least top 10 Bitcoin exchanges such as Zebpay, Unocoin, CoinSecure, and BtcxIndia, told a few others in the know-how of the recent developments.
However, Sathvik Vishwanath, the promoter of Unocoin said the banks have not apprised the company or its promoters regarding the suspension of accounts.
Vishwanath also implied that he was not conscious of the bank scrutiny while queries sent to other Bitcoin exchanges did not obtain a response.
For those who don’t know about the concept of Bitcoin, it is a virtual form of currency that can be used to buy products and services. People also invest in Bitcoins as it shot to fame sharply since last year.