Twitter user Indian CryptoGirl (@DesiCryptoHodlr) recently revealed that the Housing Development Finance Corporation (HDFC) Bank, which is India’s largest private sector lender in terms of total assets, has been sending threatening emails to local residents who purchased cryptocurrencies.
HDFC Bank started sending threatening emails to users that bought Crypto
🔹 Clarify nature of transaction within 30 days at HDFC branch
🔹 Else we will freeze the account without further reference
Threats like these strengthen my belief in Crypto. Soon we’ll be our own bank. pic.twitter.com/obNSLhXvA0
— Indian CryptoGirl ⚡ (@DesiCryptoHodlr) April 27, 2019
According to her tweet, posted on April 27, 2019, HDFC requires that users clarify the nature of their cryptocurrency-related transaction “within 30 days” at any of the financial institution’s offices.
Failure To Report Transactions Will Result In Assets “Being Frozen”
Failure to report crypto transactions could result in the account holder’s assets being frozen “without further reference,” HDFC’s management warned. Commenting on the matter, the Indian crypto enthusiast said it makes her even more confident digital assets will allow users to truly take control of their own money.
In her tweet, the Indian CryptoGirl appeared to have shared the actual letter that those dealing in cryptocurrencies may have received from HDFC’s management. The letter stated the institution has “observed that Virtual Currency transactions are reflected in your account and, as per Reserve Bank of India’s (RBI) guidelines, it is not permitted.”
In response to Indian CryptoGirl’s tweet, “Crypto India YT” (@CryptooIndia) said Indian residents have been receiving these types of messages since early this year. The Twitter user further noted that Indian customers are being asked to visit HDFC’s branches and sign and submit a consent form shared below:
Lot of people are confused.
Below is a consent form not warning letter issued by bank.
Account holder suspected of trading in crypto are being asked to visit branch & give explanation.
Also customer has to sign & give this consent letter agreeing – won’t deal in crypto. pic.twitter.com/7GV80lxME6
— CryptoIndia YT (@CryptooIndia) January 22, 2019
Confirming this is actually what HDFC has been requiring its customers to do, Indian CryptoGirl mentioned some people might not have had the chance to carefully review these emails. As a result, their accounts may have been frozen indefinitely and without them knowing exactly why their funds are no longer accessible.
Recommendation To Completely Ban Cryptocurrencies
As CryptoGlobe reported on April 26, 2019, India’s government launched various inter-ministerial consultations regarding a recently proposed draft bill – which suggests that a nationwide ban be placed on the sale, purchase, and use of cryptocurrencies.
The document, titled “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019,” has been circulated among relevant government departments. A dedicated panel has reportedly been established, in order to review the proposed ban on cryptocurrencies.
According to local news outlets, the ban has been recommended due to concerns regarding their use in financing illicit activities including money laundering and terrorism.