Crypto Traders’ Accounts shuttered by Kotak Mahindra Bank

Kotak Mahindra bank has demanded all customers to stop using their accounts for any transactions involving Bitcoin or any other type of cryptocurrencies
09 June 2018   1475

In its recent request, the bank issued a list of their immediate transactions to cryptocurrency exchanges. During the past few months Crypto trading in India is passing through a difficult period. This year, in April, the Reserve Bank of India (RBI) had published a circular asking all banks and financial institutions to stop operations with cryptocurrencies. Nevertheless, India`s Supreme Court delayed the decision on the matter until a final hearing in July 2018.

The cryptocurrency community is now concerned on 2 significant dates (July 5 and July 20) when the cryptocurrency future in India will be defined. Despite this fact,  Kotak Mahindra has gone full offensive singling out cryptocurrency traders in their bank. The bank in the circular alerts account keepers using their account for cryptocurrency trading. According to the statement, the bank will not be responsible or liable for a drop of any transactions, inconvenience, and the return of cheques or losses arising caused by the account closure.

In this regard, the bank does not encourage its customers using their accounts maintained with us for carrying out transactions involving any kind of crypto/virtual currencies and hence we request you to immediately stop transactions involving dealings in bitcoin or any kind of crypto/virtual currency from your above-mentioned account. In this case, it is observed that you have undertaken such transaction post receipt of this letter, you may treat this letter as an advance caution letter and bank will be constrained to close your account without giving any further intimation to you.
Kotak Mahindra Bank, India
Official Requirement

While it is probably that all banks may be obliged to shutter crypto accounts after Supreme Court’s verdict, Kotak Mahindra Bank is hurrying up, threatening to terminate bank accounts of crypto traders. Even although the judgment regarding crypto trading is still under consideration in the Supreme Court, the Kotak Mahindra Bank have made its own decision. 

US Authorities to Pop BTC Buble, - Giancarlo

According to the former head of the U.S. Commodity Futures Trading Commission, the launch of the Bitcoin futures at CME popped the BTC price bubble
23 October 2019   31

Former head of the CFTC, Christopher Giancarlo made a sensational admission, saying that the launch of the Bitcoin futures on the Chicago Mercantile Exchange (CME Group) was a deliberate action by the Donald Trump administration, designed to burst the cryptocurrency market that had formed by then.

One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping the bitcoin bubble. And it worked.
 

Christopher Giancarlo

Ex-head, CFTC

Chicago Mercantile Exchange (CME) Bitcoin Futures was launched on December 18, 2017. The day before, the price of bitcoin reached its historical maximum in the region of $ 20,000, but over the next months it went down sharply.

On Monday, Giancarlo also spoke at the Pantera Summit in San Francisco, where he stated that the rapid rise in bitcoin prices observed at the end of 2017 marked the formation of the first major bubble after the 2008 financial crisis.

We saw a bubble building and we thought the best way to address it was to allow the market to interact with it.
 

Christopher Giancarlo

Ex-head, CFTC

Giancarlo also believes that the Bitcoin bubble cannot be considered in isolation from the 2008 financial crisis.

Coming out of the 2008 financial crisis, the legit criticism of regulators was along the lines of: Where were they during the expansion of the real estate mortgage bubble, and why didn’t they take steps to pop that bubble when they could have?
 

Christopher Giancarlo

Ex-head, CFTC

According to him, the lessons of history forced regulators to act quickly,

I believe it shows the power of markets to bring discipline to pricess.
 

Christopher Giancarlo

Ex-head, CFTC

Christopher Giancarlo resigned as CFTC chairman in April this year. Earlier this week, current department head Heath Tarbert said that regulated futures for Ethereum will also appear within six months or a year. He also does not rule out the launch of derivatives on other cryptocurrencies.