Friday, September 30, 2022

Indian Cryptocurrency Exchanges Takes A Hit As Banking Partners Cut-Off Their Ties

The new users on leading Indian cryptocurrency exchanges, including WazirX and CoinSwitch Kuber, now would not be able to deposit their funds in the rupee on the platforms. 

The exchanges recently suspended the rupee deposits on their platforms because some banks in the country have already dissolved their partnership with them. 

A week ago, the Reserve Bank of India (RBI) informally urged the banks to cut their ties with cryptocurrency exchanges and traders in the country. 

Although the Supreme Court of India quashed the banking ban on cryptocurrency in March 2020, the banks still plan to go with their regulatory body.

Recently when RBI was asked to respond on this matter, it did not give any answer.

“This lack of clarity, which is coming through the RBI, is hurting the crypto industry. There are multiple paths that we have been exploring because we believe in talking to the banks directly. However, if the entire industry gets cut off, we might have to take the legal route,” said the chief executive officer (CEO) of a cryptocurrency exchange.

Currently, most of the Indian cryptocurrency exchanges are facing the same problem, but they are really working hard to resolve the issue as soon as possible. 

Nischal Shetty, the CEO of WazirX has said that the exchange is in talks with different banks, if everything goes well then the platform will add more banks as its partner to support the increasing volume of INR deposits.

The INR deposit issue arises at a time when new users have started joining the cryptocurrency platform. Also, it is considered to be the best time for the cryptocurrency industry as it is experiencing a boom in its volume.

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