HSBC, HDFC, and Citibank India ask crypto traders to provide transaction information

Customers of Indian private banks such as HDFC, HSBC and Citi have been receiving notices this year asking them to clarify crypto-related transactions, which often require them to visit their local bank branches in person, without which their accounts risk being suspended or seized.

A letter to customers read, "In order to comply with regulatory guidelines, banks are advised to conduct due diligence and continue to closely examine transactions conducted in accounts to alert users, holders and traders of virtual currencies, including Bitcoin, to the risks." Earlier news came that India is planning to impose personal income tax (IT) and goods and services tax (GST) on profits in the country's cryptocurrency sector before introducing a ban on cryptocurrency assets.