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Crypto exchanges go haywire as banks don’t allow deposits

Crypto markets are going through a tough time as exchanges cannot deposit money as banks have stopped coordinating with them. Even though the Supreme court of India has said that crypto is legal in India, the kind of reception it’s getting from authorities is entirely different. As a result, exchanges are finding it difficult to operate as most of them don’t have any deposit methods. And on the other hand, some are now working with Mobikwik to add payment portals. All in all, things look terrible for crypto exchanges in India.

What happened with exchanges recently?

crypto exchnages
Image Source: ThoughtsAdda

The most popular exchanges in India, WazirX, and CoinSwitch were working with Paytm to receive their deposits. But recently, they have sent out emails to users that deposit on the account will be suspended. And after that, they have removed the option. Coin switch has also added a new option of Mobikwik to make payments, while the WazirX deposit option just shows the p2p option. All other popular platforms like BitBns, CoinDCx go are also facing similar issues. Banks are simply not ready to give exchanges an account where they can receive the money. This means most users won’t be able to use WazirX or simply avoid it due to the complexity of the p2p option.

Is there anything crypto exchanges can do?

P2P networks

First and foremost, all exchanges need to add a p2p option in order to survive during this phase. So that people who really want to buy crypto will be able to do so. Even though the law states that crypto is legal, all bank reserve their rights to not do business with crypto businesses citing risks. Secondly, they can file a case that states that banks are discriminating against them without any reason. This might help, and the banks might be penalized or asked to do provide the necessary services to the exchanges.

At this point, the most important and necessary thing is for the government to come forward, take some responsibility and formulate some crypto regulations. This will give banks the confidence that they won’t get into any problem by doing business with exchanges. And these laws will also make sure that exchanges actually get the necessary support for growth in India. The government will also benefit from these as they will receive huge taxes from investors, and companies could do innovation in crypto and blockchain.

What are your thoughts on the crypto exchanges not getting bank services? And do you think that the future of crypto is safe in India? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.

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