Paytm Payments Bank Ltd (PPBL) has not formally informed cryptocurrency exchanges of the reason for this, nor has it stated whether it is due to any regulator problem.
From Friday evening (May 21), when it ceases to deal with cryptocurrency exchanges, Paytm Payments Bank Ltd (PPBL) will not enable people to buy or sell crypto assets through its platform.
PayPal, PPBL’s rival, and other payment processors that enable cryptocurrency purchases on their sites are also expected to pull the plug. Several banks cut ties with cryptocurrency exchanges such as Zebpay, WazirX, and BuyUCoin earlier this week after the RBI unofficially ordered them to reconsider.
Many payment processing firms have expressed their intent to withdraw funding, according to several leading cryptocurrency exchanges.
According to sources, the RBI has told payment processors to stop working with cryptocurrency exchanges. The apex bank has not given any written orders to payment gateway firms, as it has not done with banks. Paytm’s decision to shut down cryptocurrency exchanges comes after a period of high volatility in digital currencies, especially Bitcoin.
Bitcoin had fallen to a three-month low on May 17 amid speculation that Tesla would sell its bitcoin holdings. The decline was also caused by China’s prohibition on cryptocurrency trading. All of this is said to have caused a lot of havoc at the Indian stock exchanges.
Crypto exchanges have been developing specialised wallets, onboarding payment processing agencies, and using banks outside of India in recent weeks. Some also developed ‘offline’ systems to allow investors to access crypto assets. Crypto exchanges, on the other hand, will now have restricted options for accepting investments from Indian investors.
The decision comes as cryptocurrency prices are plummeting around the world, with Bitcoin leading the charge and smaller players like Ethereum not far behind. The wild swings were triggered by rumours that Elon Musk’s Tesla would sell off all Bitcoin properties, as well as China’s complete ban on crypto trading.
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Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.
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