Citi Bank India has banned the purchase of cryptocurrency using its debit or credit cards.
The Indian subsidiary of the multinational Citi group informed the decision in an e-mail sent to all its cardholders Tuesday citing concerns expressed by the Reserve Bank over virtual currencies.
“Given concerns, both globally and locally including from the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with bitcoins, cryptocurrencies and virtual currencies, Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies and virtual currencies”.
Citi Bank now joins the ranks of Bank of America, JP Morgan and Lloyds that stopped their customers from using credit or debit cards for the cryptocurrency business.
It comes days after Facebook banned cryptocurrency-related advertisements on its platform, and India’s Finance Minister saying at his budget speech that bitcoin is not legal tender.
The ban on Cryptocurrency purchase via credit and debit cards will be a major setback for Indian cryptocurrency market, reports say.
Bitcoin lost its value by more than 4 percent in trading Tuesday. After opening at $8925, it fell as low as $8370.
After plunging below $6,000 last week, the most popular crypto currency has been showing indications of a recovery.