SBI Cards & Payments Services Pvt. Ltd, the second largest issuer of credit cards in India, has warned customers of the risks associated with cryptocurrencies. Despite the warning, the company did not move to ban its customers from purchasing bitcoin and other virtual currencies using SBI issued credit cards.
SBI Cards Warns Customers of Crypto Risks
SBI Card has issued a warning to customers emphasizing the risks associated with cryptocurrencies. SBI Card also sought to reiterate the position of Reserve Bank of India, stating that government advisories have not given any licensing or authorisation for any entity to operate in any cryptocurrency schemes or virtual currencies.
The announcement comes weeks after Citi India banned the use of its credit and debit cards for the purpose of purchasing bitcoin and other cryptocurrencies., at the time issuing a release stating “…Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, crypto-currencies, and virtual currencies.”
The notice states “Given concerns, both globally and locally, SBI Card would like to advise you to be mindful of potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with crypto-currencies and virtual currencies.” SBI currently has a customer base of over 5 million, and is the second largest credit card issuer in India behind only HDFC Bank Limited.
Indian Crypto Regulations Expected Soon
Numerous Indian officials have indicated that India’s long-awaited regulatory guidelines for cryptocurrencies are presently being formulated by the relevant institutions, and that the industry can expect said legislation to be implemented soon.
The Chairman of the Department of Economic Affairs, Ajay Tyagi, recently indicated that many aspects of the regulatory apparatus have already been developed, stating “We have actually decided which regulator will do what and the committee should come out with the regulations very quickly.”
The impending regulation has not been welcomed by all members of India’s cryptocurrency authority, with many traders seeking means through which to purchase virtual currencies overseas in an attempt to bypass India’s regulatory jurisdiction.
Do you think many banking institutions will continue to allow customers to purchase cryptocurrencies using credit cards? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
Need to calculate your bitcoin holdings? Check our tools section.
Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.