Bitcoin exchanges are having a hard time in India, as many of the country’s top banks have suspended functionality on cryptocurrency exchange accounts. State Bank of India (SBI), Axis Bank, HDFC Bank, ICICI Bank and Yes Bank have taken action toward such exchanges by either closing accounts or limiting functionality.
Recently an Indian advocate Bivas Chatterjee filed a public interest litigation (PIL) in Calcutta to impose immediate regulations on Bitcoin and other cryptocurrencies. Additionally, the Ministry of Finance, India referred to Bitcoin as a ponzi scheme.
A couple of weeks ago, Koinex, a cryptocurrency exchange based in Mumbai said that Indian banks have been creating delays and hindrances in transactions. According to a blog post,
“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.”