The Paytm Payments Bank has stopped offering its services in crypto-related activities since May 21. As per the source, the Indian e-commerce payment system and fintech company has recently broken its ties with the crypto exchanges in the country.
Yesterday, the Indian banks announced to no longer provide their services to the crypto exchanges like Wazirx, BuyUcoin and Zebpay. This announcement came after the Reserve Bank of India’s (RBI’s) informal request to banks where it asked the financial institutions to cut their ties with the exchanges.
Presently, PayPal and Venmo are the few financial institutions that are offering their services to the exchanges, but soon they might also follow the footsteps of others, said the industry sources.
During an interview with The Economic Times, a newspaper outlet in India, one of the crypto executives said. “ Paytm Payment Bank’s support will conclude by end-of-day on May 21, but the company has neither given them an official reason, nor told them whether this was due to regulatory issues.”
Recently, many Indian crypto exchanges shared their concern regarding the issue. They have stated that other payment services in India have also indicated their intention to withdraw support.
According to the sources from the RBI, a week ago, the central bank holds a meeting with the financial institutions in India and directed them to part their ways with the cryptocurrency exchanges. The sources have specified that the central bank did not give any written order to its entities, in fact, it was an informal directive.
When Paytm and the RBI were questioned regarding the matter, they did not answer anything.
The decision came during that time when the cryptocurrency market is already falling flat, globally.
Initially, the market fluctuated when Tesla CEO Elon Musk said that his company would not accept Bitcoin payment for electric cars, anymore. After that, assumptions were being made that Tesla would sell off all its crypto assets. Later, the market falls down further when China completely banned crypto trading in the country.