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Paytm Payments Bank stops support for crypto exchanges

Wednesday 26 May 2021 10:36 CET | News

India-based Paytm Payments Bank has stopped providing banking support to cryptocurrency exchanges such as WazirX, ZebPay, and CoinSwitch Kuber, the exchanges said in separate statements.

While Paytm did not comment on this development, one of India’s biggest crypto exchange, WazirX, with more than four million users, however, said it will soon add two more channels for bank deposits. Another crypto exchange, BuyUcoin, said Paytm Payments Bank suspended support to the exchange without an official reason.

At present, users can only add funds to the exchange via peer-to-peer (P2P) transactions. Under this route, users convert their rupees to crypto tether (USDT) by trading with other users. The exchange facilitates the conversion through an escrow mechanism but does not directly accept rupee credits.

In a nutshell, if you are selling any crypto, you have to convert your digital asset to USDT and then sell the USDT for rupees using WazirX P2P. While buying, you must convert your rupees to USDT and then trade in a crypto. However, this system is cumbersome for an average investor.

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Keywords: cryptocurrency exchange, banks, crypto asset, P2P
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: India
This article is part of category

Blockchain & Cryptocurrencies