Paytm to hold itself back from Cryptocurrency transactions

Cryptocurrency

Paytm Payments Bank is going to no longer permit anyone to buy and sell crypto assets through its platform from the past Friday night as it stops trading on cryptocurrency exchanges.

According to the Competitor — PayPal and many other payment processing companies which permit cryptocurrency purchases on their platform could also make it stop.

As per the official PayPal representative, PayPal and Venmo’s crypto services are only available in the United States. Most banks had stopped associating with cryptocurrency exchanges like WazirX, BuyUCoin and Zebpay earlier this week when the Reserve Bank of India informally suggested them to rethink relationships with them.

While talking about it, the CEO of a cryptocurrency exchange, said, “Paytm Payments Bank is going to end its EOD support tomorrow by end of the day. The company has not officially given a reason for this decision nor has given any indication if it was because of a regulatory problem.”

Many leading cryptocurrency exchanges are saying that many payment processing companies have announced their intention to withdraw support. Although none of them has issued a press release or responding to the questions.

As per the sources, the RBI directed payment processing companies to cease trading cryptocurrency exchanges. As with the banks, the central bank has not issued a written instruction to the payment gateway companies.

Paytm’s call to back outcomes right after cryptocurrencies, particular to Bitcoin, faced a lot of fluctuations. Bitcoin dived to a three-month low last Monday amidst speculation that Tesla may sell its holdings in the virtual currency. The decline was also because of China banning cryptocurrency trading in the country.

This has created huge chaos in the Indian stock exchange market. Many investors want to liquidate their position and exit, but can not. The exchanges had to develop different mechanisms as the banks refused to conduct with them.

In the past few weeks, crypto exchanges had created dedicated wallets, concerning payment process firms, and deployed banks outside of India. Some even started “offline” payment systems so investors will use them to access crypto assets.

Crypto exchanges have few choices left to accept investments from Indian investors. Industry insiders think that Paytm’s decision to no longer deal with crypto exchanges is in line with the company’s ambitions to create a brand new Umbrella Entity (NUE) in India.

Author

  • Online Team Asia Tech is a team of Journalists, Entrepreneurs, and Enthusiast Writers who contribute to the platform by bringing everyday stories, updates, opinions and insights from the Asian Startup Ecosystem.

Leave a Reply

Your email address will not be published.

Subscribe to our Newsletter!

Get the latest on the Startup ecosystem delivered to you every day. Made for the Smart and Ambitious.

Total
0
Share