In a major development for the cryptocurrency traders and investors in India, Paytm Payments Bank has stopped providing banking support to cryptocurrency exchanges like WazirX, ZebPay, and CoinSwitch Kuber, reports Livemint.
The move by Paytm Payments Bank comes as another setback for the domestic cryptocurrency exchanges which have been struggling to find banking partners. Earlier ICICI Bank and Yes Bank had also severed ties with these exchanges.
It should be noted that these developments have come after the Reserve Bank of India (RBI) had earlier this month informally asked the banks to stay away from businesses dealing in cryptocurrencies.
According to WazirX's co-founder Siddharth Menon, “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 bank deposit and we don’t want users to take the extra step. We are in talks with multiple banks and we are looking to open up two more channels for deposits soon.”
It should be noted that the industry has maintained that cryptocurrencies are 100 per cent legal in India and that preventing people from engaging in legal and legitimate business is not justifiable.