WazirX bank deposits temporarily disabled; Crypto exchanges face resistance from banks

Over the past few months, cryptocurrencies have become an increasingly popular mode of investment and trading in India, especially among the younger generations. As the younger population is more technologically savvy, they are more open to new concepts like digital and cryptocurrencies. The rapid rise of crypto in India has been lead in part by the crypto exchanges like WazirX, Zebpay, CoinDCX that have enabled Indian investors to invest in cryptocurrencies in an easy manner. However, over the past month, many Indian crypto exchanges have been facing problems with their banking partners, which leads to the problem of users not being able to deposit funds into their accounts. Read on to know why WazirX bank deposits have been disabled. 

WazirX Bank Deposits Disabled Temporarily 

Last night, WazirX users received an important email from the company which said that WazirX is going to stop accepting payments INR deposits to their PAYTM Bank account from May 21. When people try to deposit INR through bank transfers, they get the message - 'Sorry this mode is temporarily disabled'. This issue with WazirX deposit and INR deposits for other cryptocurrencies has been going on for a while now. CoinDCX and Coinswitch Kuber have also reported on their Twitter often that their INR deposits have been disabled due to issues with their banking partners.

Many private banks such as ICICI and Axis bank have openly made statements that they consider crypto investments risky and have stopped giving services to crypto exchanges. As per a report by The Quint, banks have also stopped providing UPI services to the crypto exchanges. However, the National Payment Corporation of India (NPCI) has publicly said that they are going to continue providing UPI services to crypto exchanges, and it is up to the banks to regulate whether they want to deal with companies dealing with cryptocurrencies. 

WazirX has mentioned in the email they are working hard to open a new bank deposit option for their customers. Since the Supreme Court lifted the cryptocurrency ban in 2020, calling it 'unconstitutional', the crypto industry has boomed in India. However, recent rumours that the government may be considering banning cryptocurrencies has apparently spooked banks. More recently, Nischal Shetty, founder of WazirX put out a Tweet saying that the government is reconsidering their stance on cryptocurrencies, and are planning to regulate them, instead of banning. However, only time will tell how the crypto industry shapes up in India in the future, based on the government's decisions. 

DISCLAIMER: The information provided on this website is for educational and entertainment purposes. The information provided on this websites does not constitute investment advice, financial advice or trading advice. Republic World does not recommend purchasing any cryptocurrency. Crypto markets are highly volatile and crypto investments are risky. Readers should do their own research on cryptocurrencies and consult their financial adviser before making any crypto investments. 

IMAGE: WAZIRX TWITTER