Paytm Payments Bank has ceased to provide banking support to cryptocurrency exchanges such as WazirX, ZebPay, and CoinSwitch Kuber. According to Mint, the exchanges said in separate statements on Friday. The move is another setback for the crypto industry.
The crypto industry is struggling to find banking partners these days and earlier this month the Reserve Bank of India (RBI) has informally told banks to stay away from business dealing in cryptocurrencies. Earlier, ICICI Bank and Yes Bank had also broken ties with this sector. However, Paytm has not made any statement on this.
However, India’s largest crypto exchange, WazirX, which has more than 4 million users, said it would soon add two more channels for bank deposits.
Currently, users can only add funds to the exchange through peer-to-peer (P2P) transactions. Under this, users exchange their rupees in crypto tether (USDT) by trading with other users.
WazirX users shocked, bank transfer to buy cryptocurrency will not work
In short, if you are selling a crypto, you will have to convert your digital assets to USDT and then sell USDT in rupees using WazirX P2P. When buying, you have to convert your rupee to USDT and then trade in crypto. However, these systems are cumbersome for an average investor.
WazirX co-founder and COO Siddharth Menon said, “WazirX users are using the P2P route, but as an industry we need a bigger solution, which is banking support. P2P is not as good as a bank deposit.” And we do not want users to take additional steps. We are in talks with several banks and we are considering opening two more channels for deposits soon. “
A second crypto exchange, BuyUcoin, said that Paytm Payments Bank suspended support to the exchange without any official reason.
BuyUcoin CEO Shivam Thakral said, “Because of this, users are facing problems while trading on our platform. We are relying on other partners to service our users and soon this problem Looking forward to a solution. “
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