Most crypto exchanges were working with Paytm payments bank to deposit money on the app. And until now, the options were working well. But recently, paytm has stopped working with the exchanges due to unofficial pressure from the RBI. Though this is not a confirmed report, most people are speculating that the banks are worried about crypto’s future, and so is RBI. This is why even though the entity is not banned in India, banks are declining to provide services to crypto exchanges in the country. Fun Fact: While every other exchange is facing some issue, BitBns is still working with HDFC for the same.
Paytm Payments bank service discontinuation!
WazirX and other crypto exchanges have announced that they won’t have INR deposit options with paytm anymore. And any deposit made to the account will be reversed back with some time. The exchanges also said that they are working hard to bring in some banks to enable the deposit option. Paytm has not officially announced that they ended this partnership, neither have they stated any reason about it. It is expected to be pressure from the authorities.
The problem with this is that unlike 2018 when RBI did the same thing, this time around, crypto is legal in India. And it seems the banks are just worried about money from moving out of their savings accounts and FDs to crypto exchanges WazirX’s co-founder talked about this, saying that they are trying to educate banks on the subject of crypto. And are hoping that in a few weeks things will be better.
The solution!
There is a simple solution to all this, and that is regulation. If the government formulates laws that make the future of crypto clearer in India, the banks will also find it comfortable to work with the exchanges. The government did say that they are working to formulate an official body that will formulate crypto laws in the country. And if that happens, it will be a pretty big thing for the industry. Till then, anyone who wants to purchase crypto will probably have to suffice with p2p trading. In fact, this is how crypto is meant to be.
What do you think about crypto exchanges getting blacklisted by the RBI? And do you think this problem will get solved soon? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
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