SBI, the second-largest issuer of credit cards in India, has warned clients of the risks associated with digital currencies. In spite of this warning, the company has not decided to ban its customers to purchase Bitcoin and other crypto-currencies via credit cards issued by SBI.
Source : Pixabay. SBI authorizes the purchase of crypto-currencies via their credit cards.
SBI warns clients of the risks associated with crypto-currencies
SBI has issued a warning to customers highlighting the risks associated with crypto-currencies. The SBI has also sought to reiterate the position of the Reserve Bank of India, stating that the indian government has not given any license or authorization to any entity to operate on the market of the virtual currency. The announcement comes a few weeks after Citi India has banned the use of its credit cards for the purchase of Bitcoins and other crypto-currencies. Citi India has decided not to allow the use of its cards because of the warning of the authorities.
Check out below a video explaining why banks have banned the use of credit cards :
The notice issued by SBI said that, given the concerns of local authorities and global, the company wishes to advise clients to take into account the potential risks to economic, financial, operational and legal related to the digital currency. SBI currently has over 5 million customers and is the second largest issuer of credit cards in India behind HDFC Bank Limited.
Regulations on crypto-currencies are expected soon
Many officials in india have stated that the regulatory guidance for the crypto-currencies are currently being developed by the institutions involved, and the industry can expect this legislation to be applied quickly. The chairman of the Department of economic affairs, Ajay Tyagi, recently said that several aspects of the regulatory framework had already been studied.
These devices have not been well received by all the members of the authority in charge of regulating the market in India. Besides, many traders are looking today at ways to buy crypto-currencies abroad in order to circumvent the laws of india.
Source : NewsBitcoin