India: Citibank prohibits the use of credit and debit cards for buying cryptocurrencies

India: Citibank prohibits the use of credit and debit cards for buying cryptocurrencies

The ranks of the world’s largest banks, ban their customers to use credit cards for buying cryptocurrencies, joined Citibank India.

However, the management of the Bank has gone even further and banned the use of debit cards.

Quartz edition in India published 14 Feb the material, assured that he personally saw and checked the email from Citibank India sent to customers on February 13, which stated the following:

“Given the problems, both in a global sense and on local level, including in the Reserve Bank of India, Citibank India, warning members of the public in relation to the potential economic, financial, operational, legal and other risks associated with cryptocurrencies, decided to ban the use of credit and debit cards of the Bank for the purchase or sale of cryptocurrency”.

Citibank India is a subsidiary of Citigroup a multinational Corporation investment banking and financial services, which last week banned the use of credit cards for buying cryptocurrencies. Earlier this month a similar decision was taken by the leading financial conglomerates USA J. P. Morgan Chase and Bank of America, later joined by the British financial conglomerate Lloyds Banking Group.

The Indian government could not take a clear stance against cryptocurrencies. The Minister of Finance in December 2017 has called Bitcoin a “Ponzi scheme”, and in mid-January, many Indian banks have suspended or closed the accounts of cryptocurrency exchange, citing the risk of “questionable transactions.” However, many financial institutions of India have a positive attitude to the Blockchain technology. The government has not yet issued a statement about long-term prospects of the Indian market of cryptocurrencies, and until then it is impossible to predict the regulatory trend.

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