CITI bank Stops customers from using its Debit/Credit card for Cryptocurrency Transactions

Citibank India announced debit card and credit card users via email on the 13th of February they would no longer be able to participate in cryptocurrencies such as bitcoin. Because of the regional and global concerns from regulators, the over a century old institution follows a growing number of traditional banks in cutting off access to the decentralized currency.

Citibank Bans Bitcoin

Through an official email, Citibank announced:

“Given concerns, both globally and locally including from the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with bitcoins, cryptocurrencies, and virtual currencies, Citi India has decided to not permit use of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies, and virtual currencies.”

Last month, Major Indian Banks such as State Bank of India, Axis Bank, HDFC Bank, ICICI Bank and Yes Bank had suspended accounts of major bitcoin exchanges, assuming doubtful transaction. Recently, Indian Finance Minister Mr. Arun Jaitley signaled that cryptocurrencies such as Bitcoin are not a Legal Tender.

Jaitley Told:

“The Government does not consider cryptocurrencies as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.”

Kotak Mahindra Bank also rejects Bitcoin as Well

Kotak Mahindra Bank has also announced customers are no longer able to participate in cryptocurrency trading through the bank. It has over a thousand branches in India, with over two thousand ATMs, it is also considered as the fourth largest bank in the country.

The bank also warned if any crypto activity noticed on any accounts, those accounts would be immediately closed.