Paytm Payments Bank Ltd no longer allows users to buy or sell crypto assets through its platform. This was further confirmed in a tweet by Bitcoin and cryptocurrency exchange WazirX, which announced on Thursday that it will not accept INR deposits from IST to Paytm bank accounts at 11:59 pm on May 20, 2021. Did. This happens after some other banks, such as YesBank and ICICI Bank, also closed their associations with cryptocurrency exchanges (such as WazirX and BuyUCoin) earlier this week.
Paytm Payments Bank has not yet officially announced the end of support for cryptocurrency exchange on the platform. Also, the reason for that stance has not been clarified. I contacted Paytm but haven’t received a response yet.
In April 2018, the Reserve Bank of India (RBI) issued instructions to all regulated entities, including banks. Do not provide services to companies that handle virtual currencies such as Bitcoin, To protect consumer interests and check money laundering. The ban led to a plunge in trading volume and the closure of exchanges.
However, in March 2020, Supreme Court has revoked RBI ban Allowed banks to handle cryptocurrency transactions from exchanges and traders.
He contacted WazirX co-founder Siddharth Menon, saying, “Some banks still have old circulations and don’t know how crypto works. This resistance is only from the compliance team. Go to the bank to educate. We are making progress and hope that things will be more positive in the coming weeks. “
“It’s a shame that India is at the forefront of fintech limiting the crypto industry. WazirX will enable several more deposit options starting today,” Menon added.
The Government of India is already working on cryptocurrencies and regulations for the official 2021 Digital Currency Bill. It is believed to ban all private digital currencies (cryptocurrencies) and promote a regulatory framework for launching its own official Central Bank Digital Currency (CBDC), supported by the RBI. The CBDC is reportedly named LaxmiCoin.
The bill was to be submitted to Parliament’s budget meeting, but was postponed as the government continued to talk to stakeholders in this area.
In March of this year, Federal Finance Minister Nirmala Sitharaman told the government: Do not “shut off all windows” of cryptocurrencies.. “We allow a certain amount of windows for people to experiment with blockchain and Bitcoin,” she said.
