TL;DR Breakdown
• PayTm restricts business with crypto exchanges.
• WazirX will include two banking channels.
Paytm Payments Bank, India’s exchange system, has stopped supporting various crypto exchange platforms. Crypto exchange systems which include ZebPay, WaziX, and CoinSwitch Kuber are no longer backed by the Uttar Pradesh, India-based company.
The move is another setback for the India crypto market, which struggles to find banking partners and is brought about by the RBI’s actions. At the beginning of May, the Reserve Bank of India asked other entities to move away from cryptocurrencies. Previously, Yes Bank and ICICI Bank had broke ties with the decentralized market.
Paytm did not clarify why it left the crypto exchanges
The measures imposed on crypto exchanges by PayTm were not clear, leaving many crypto enthusiasts with doubts. But India’s most extensive exchange system, WaziX, indicated that it would include two channels for making bank deposits.
For now, clients can only include their funds to the platform from P2P transactions. Users can convert their rupees into USDT cryptocurrencies when trading them with other connected users from this route. The exchange improves the conversion through a guaranteed deposit system but does not accept loans in Rupees directly.
The USDT cryptocurrency is pegged to the US dollar and has a stable value. If you sell any crypto, you must convert it to USDT and sell the asset for rupees from WazirX. While shopping, you must convert your rupees to USDT and then exchange it with the cryptocurrency you want.
WazirX co-founder Siddharth Menon suggests that while the P2P route is good, it is not as efficient as bank deposits. Menon wants to guarantee a higher return to the investor to have his cryptocurrencies without a complex procedure.
BuyUcoin speaks out against the Paytm measure
Another crypto exchange from India has chipped in about PayTm’s actions towards the decentralized market. BuyUcoin says PayTm removed exchange support without giving an apparent reason. The director of the exchange system BuyUcoin, Shivam Thakral, says that due to the suspension of PayTm, its users are poised to have connection problems.
Thakral clarifies that he trusts his business partners to serve users affected by the PayTm measure. The crypto exchanges system hopes to solve the problem soon to resume its operations.
Market executives maintain that cryptocurrencies are legal in India, and there is no reason to regulate them. They also believe that the best way to prevent illicit business with cryptocurrencies is not necessarily banning crypto exchanges. Vikram Rangala, director of ZebPay, believes that banks in India may negotiate with crypto companies.
ZebPay says it is creating new alternatives to continue providing the service to all its customers.
