Nandini YadavMay 21, 2021 1:51:33 PM IST
Paytm Payments Bank Ltd no longer supports cryptocurrency exchanges. This was confirmed in a tweet from WazirX, a Bitcoin and cryptocurrency exchange, which announced Thursday that it “will not accept INR deposits to the Paytm bank account as of 11:59 p.m. IST tonight, May 20. 2021 “. It comes after several other banks such as Yes Bank and ICICI Bank also ended their association with cryptocurrency exchanges (such as WazirX and BuyUCoin) earlier this week.
While we are working with our partners to add more INR deposit options, we recommend using WazirX P2P to buy / sell USDT with INR.
Thank you for your support! ð
NOTE: INR withdrawals will not be affected.
– WazirX: Bitcoin and cryptocurrency exchange in India (@WazirXIndia) May 20, 2021
Paytm Payments Bank has yet to officially announce the end of support for the cryptocurrency exchange on its platform. He also did not clarify the reason for his position. We have contacted Paytm and have not yet received a response on this matter.
In April 2018, the Reserve Bank of India (RBI) led all regulated entities, including banks not to provide services to companies dealing with virtual currencies like Bitcoin, in order to protect the interests of consumers and to control money laundering. The ban led to the drop in trade volumes and the exchanges shut down their businesses.
However, in March 2020, the Supreme Court overturned RBI ban and allowed banks to handle cryptocurrency transactions from exchanges and traders.
We reached out to WazirX co-founder Siddharth Menon, who said, âSome banks are still sticking to the old circular or have no idea how crypto works. This resistance comes only from their compliance team. We have achieved our goal. to banks and educate them; we are making progress and hope that things will be more positive in the coming weeks. “
âIt is unfortunate that India being at the forefront of fintech is restricting the crypto industry. WazirX will allow some additional deposit options starting today,â Menon added.
The Indian government is already working on the Cryptocurrency and Official Digital Currency Regulation Bill, 2021, which is supposed to ban all private digital currencies (cryptocurrencies) and promote a regulatory framework to launch its own currency. official digital central bank (CBDC). supported by the RBI. Reports suggest that the CBDC will be called Laxmi Coin.
The bill was supposed to be tabled during the budget session of Parliament, but it was postponed as the government continues to discuss with space stakeholders.
In March this year, Union Finance Minister Nirmala Sitharaman said the government will not “close all windows” for cryptocurrency. âWe will allow a number of windows for people to experiment on blockchain and Bitcoin,â she said.
(Read also: WazirX trading platform deals with outages when cryptocurrencies plunge; opens floodgates for memes on Twitter)