India’s largest mobile commerce platform Paytm has reportedly been freezing the bank accounts of users suspected of crypto trading, even though cryptocurrency, including bitcoin, is legal in India. The country still does not have a legal framework for cryptocurrencies but the government says that a crypto bill is “awaiting approval.”
Banks Still Block Accounts Over Crypto Activities
Paytm Payments Bank, which describes itself as India’s “largest digital bank with over 58 million account holders,” has reportedly been blocking customers’ accounts suspected of trading cryptocurrencies. Paytm is India’s largest mobile commerce platform with about 450 million registered users. The brand is owned by One97 Communications Ltd., founded by Vijay Shekhar Sharma. Local Indian news outlet Coin Crunch reported Monday:
Many users are reporting Paytm is freezing bank accounts of Paytm payments bank account holders with suspicion of crypto trading.
The publication explained that Paytm offers INR wallet and INR banking services. “So P2P or spot, users can use this bank account to receive money or to send fiat to deposit in exchanges. And those bank accounts are being frozen.”
Paytm would not be the only bank to have a problem with cryptocurrency trading. Last month, Axis Bank, India’s third-largest private-sector bank, reportedly called customers asking whether they used the accounts for cryptocurrency trading. The bank also warned that it will block accounts used for this purpose. Some customers said they were also asked to sign a declaration form confirming that they “do no deal in any type of virtual currency transactions” through their accounts at the bank.
Before the supreme court quashed the central bank’s circular in March, banks were closing accounts suspected of being used for crypto trading. The circular by the Reserve Bank of India
