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- Paytm payments Banks snaps banking support to cryptocurrencies
- RBI informally directs banks to cease trading in cryptocurrencies
- Supreme Court has deemed cryptocurrency trade as 100% legal
The last few days have not been very conducive for crypto trade. First, the values of BTC and ETH have crashed following certain events. The most avowed supporter of cryptocurrency, Elon Musk, has made a U-turn, and now Tesla is also not accepting BTC as payment for its Electric vehicles. Livemint.com reports that Paytm Payments Bank has stopped providing banking support to cryptocurrency.
Endless trouble for cryptocurrencies
As the adage goes, trouble never comes alone. First, China started tightening regulations on the crypto trade. It had a cataclysmic effect on the values of the significant cryptocurrencies. The latest calamity which has hit cryptocurrency is that Paytm Payments Bank has withdrawn support to cryptocurrency exchanges, such as WazirX, ZebPay, and CoinSwitch Kuber, etc.
RBI informally asks to refrain from dealing in crypto trade
The Reserve Bank of India had asked banks to stay away from the crypto trade informally. The latest move by Paytm Payments Bank will make the going even more difficult for businesses dealing in cryptocurrencies. A few days ago, ICICI Bank and Yes Bank had also severed ties with the sector. WazirX, India’s biggest crypto exchange, has added two more channels for bank deposits. WazirX has more than 4 million users.
Though the highest court of the land has decreed that banks cannot be stopped from doing transactions with crypto coins and are 100% legal, users still have to use peer-to-peer (P2P) transactions to add funds. The user has to convert Rupees into USDT by trading. The exchange affects the conversion via an escrow mechanism. Rupees are not directly accepted.
However, this is a lengthy process, and according to Siddharth Menon, co-founder and chief operating officer (COO), WazirX, banking support is the best option.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
