Sunday, February 5, 2023

ICICI Bank Instructs Payment Gateways To Suspend Crypto Transaction, Says Crypto Exchanges

The cryptocurrency exchanges in India have recently reported a transaction issue, claiming that the payment gateways blocked it.

It has been reported earlier that ICICI Bank has decided to dissociate itself from cryptocurrencies, therefore, it has asked some of the payment gateway operators to not provide their services to those merchants who deal in cryptocurrency, directly or indirectly.

On May 04, Nischal Shetty, the founder of the Indian cryptocurrency exchange WazirX, discussed the issue on Twitter. Shetty tweeted that while citing the Reserve Bank of India’s ban in crypto dealings, in the year 2018, the banks are refusing to process the crypto transaction.

Shetty further tweeted, “I request banks in India to update their compliance teams about the Supreme Court ruling that set aside the RBI circular against crypto. It’s not fair that the crypto industry has a clear go-ahead from the Supreme Court of India and yet banks deny banking to the industry.”

As per the reports, ICICI Bank was one of the biggest lenders that were offering its services to the crypto exchanges, but a few weeks ago, the bank blocked its services. Now, it is being assumed that other large banks that are still providing their services would soon pull back their support. However, currently, no one knows the reason behind the restrictions imposed by the bank.

A senior executive of a large payment gateway company has recently spoken on this issue. According to him, the banks are blocking the crypto transaction to protect the investors from getting attracted to the unregulated sector.

While talking about the blocking of the crypto transaction, the executive director at Infibeam Avenues, Vishwas Patel, recently said, “We want the government to step in to build frameworks for these exchanges, and for trading in cryptocurrency.”

A few weeks ago, Patel disclosed that the companies providing PG services to the merchants dealing in cryptocurrencies or exchanges had been instructed to stop doing so, by the leading banks.

If the leading banks in the country continue restricting the companies from providing their services then the crypto exchanges in India might soon have to vanish their businesses.

The report suggests that currently, the crypto exchanges are using their backups for processing the crypto transaction but in the future if the same situation continues then those backups would also be suspended.

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