Cryptocurrency traders have been increasing recently with the surge in prices as more and more investors are looking to trade these digital currencies. Efforts are being made in the trading community to increase the usability and reach of cryptocurrency and to make it widely adopted in the market like mutual funds, bonds, and shares. Now, as more and more people are looking to invest in the growing cryptocurrencies like Bitcoins, ether, and even the meme turned cryptocurrency: the dogecoin, banks are posing as a barrier in effective transactions and are blocking the payment gateways for any incoming or outgoing cryptocurrency trade.
Banking institutions see cryptocurrency trades as a threat to their ecosystem of the centralized and regulated financial system, which leads to havoc within the trading community as well as in the financial-banking sector as having decentralized finance that coexists with the regulated authorities seems to be a tough aspect to grasp. Cryptocurrency trading is at an all-time high and is ever-increasing, but these traders and the people looking to start trading crypto are not being able to withdraw from or add money to their accounts. Banks like ICICI, Union Bank, and HDFC, among others, have started to stop their payment gateways as soon as any cryptocurrency trade is detected, which is an attempt at off-putting and drifting away traders from these decentralized finances that are on the rise worldwide.
Oftentimes, traders are on the lookout for a dip in prices of their favored cryptocurrency, and it is common to find people waiting for weeks or even months to find the right price to invest. Prices of mainstream cryptocurrencies like Bitcoin and Ethereum are constantly fluctuating throughout the day, and investors that are looking to trade their cryptocurrency and make profits out of it are missing their chances due to the choking of payment gateways done deliberately by banking institutions to regulate and tamper the flow of cryptocurrency. People are losing millions of their hard-earned money due to these alterations done by banks and are stuck with their holdings.
In 2018, after RBI announced the ban on cryptocurrency, Supreme Court took its time and ruled out the ban stating it was unconstitutional. After this decision, there has been a rise in the number of users that were never seen before. Trading platforms are registering millions of users to the network through last month alone. Even though Supreme Court has ruled out the ban, banks are still awaiting clarification on the use of crypto trades. People are moving away from Indian exchanges, as the risk of regulators acting as a threat to the smooth flow of transactions is high.