ICICI Bank will close accounts and credit cards doing Bitcoin trading

ICICI Bank has issued a warning to the credit card users and account holders about bitcoin and forex trading in overseas market. This is what they are saying in the email, “Under the Foreign Exchange Management Act (FEMA), 1999, a resident Indian is permitted to make only those foreign exchange transactions on ICICI Bank Cards or Account that are permissible and remittance in any form towards overseas exchange trading through internet/ electronic trading portals is not permitted. Indian residents are therefore prohibited from trading in foreign exchange in domestic and overseas market, including binary option trading with commodities, stocks, indices, bitcoin index and forex etc. “

They add, “Please make note of the prohibitions on using your ICICI Bank Cards or Account for such unauthorized transactions in contravention to the FEMA and the regulations issued thereunder and that violation(s), if any, would attract action under the extant laws and regulations against such residents.

In case such transactions are noted on your ICICI Bank Cards or Account, we shall be constrained to close your card or account without any liability or responsibility on the part of the bank.”

Indian banks have already blocked bitcoin payments and withdrawals from the cryptocurrency exchanges. Now by blocking credit cards from making payments to international exchanges, less and less Indians will be able to buy / sell bitcoin.