The bank in a statement said that it will not allow its services to be used for Bitcoin-related transactions while also urging users not to use its remittance services to send cryptocurrencies.
Since the inception of Bitcoin, India’s attitude on cryptocurrency adoption has been hazy.
In what appears to be yet another setback for the Indian crypto community, ICICI Bank has issued a warning to users not to use their remittance services to send any type of crypto or digital currency.
The bank has stated plainly in its latest edition of the Retail Outward Remittance Application form that it will not allow users to use the service for bitcoin transactions.
The declaration is based on the Foreign Exchange Management Act (FEMA) of 1999, which states:
“The above remittance is not for investment / purchase of Bitcoin/Cryptocurrencies/Virtual Currencies (such as Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Dash, Peercoin, Dogecoin, Primecoin, Chinacoin, Ven, Bitcoin (BTC) or any other virtual currency/cryptocurrency/bitcoin).”
The big banking institution has issued two more statements reiterating its anti-adoption stance, as well as a warning to consumers not to utilize its remittance service to invest in enterprises dealing with Bitcoin or other crypto and virtual currencies.
Users were also advised not to send any monies that had previously been obtained through crypto investments. The Indian government, on the other hand, has demonstrated no aversion to blockchain-based financial applications.
Since the Reserve Bank of India (RBI) placed a restriction on banks doing business with crypto-related enterprises in April 2018, ICICI’s approach to employing FEMA 1999 to combat crypto adoption has been consistent with other banking operators in the nation.
The Supreme Court of India has overturned the RBI’s restriction on crypto-friendly banks, in contrast to ICICI’s recent decision to ignore crypto fans.
As a result of this ambiguity, Indian crypto investors continue to look for loopholes in the system to expand their holdings.
While policymakers continue to put off the inevitable, the clear absence of legislative clarity on crypto investments has a direct impact on investors and the country’s fintech innovation.
On the other hand, due to the RBI’s explanation on the removal of the ban based on the Supreme Court’s judgment, India’s largest cryptocurrency exchange, Binance-owned WazirX, continues to observe an increase in trade volumes and new customers.
