IMAGE: WAZIRX TWITTER
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.
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.
📢 Update on INR deposits— WazirX: Bitcoin & Cryptocurrency Exchange in India (@WazirXIndia) May 21, 2021
We're at the finishing stages to add new banking partners and bringing in multiple INR deposit options for our users to deposit funds to WazirX wallet.
We’ll update you as soon as we've added them.
Thank you for your support. 💪
Day 928— Nischal (WazirX) ⚡️ (@NischalShetty) May 17, 2021
What do we want?
We want to help in nation building 🇮🇳
Is that wrong? Is it a crime to be involved in innovative technology in India?
Why cannot banks in India follow the Supreme Court ruling?
Why do they have to cause trouble to 15 Million people?#IndiaWantsCrypto
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.
Day 932— Nischal (WazirX) ⚡️ (@NischalShetty) May 21, 2021
It’s unfortunate that crypto sector in India is facing trouble with API based payment processing access.
Supreme Court order was clear and it should be accepted by everyone in the country
Crypto industry should not be cut off from banking access!#IndiaWantsCrypto
Lots to unpack here.— Nischal (WazirX) ⚡️ (@NischalShetty) May 19, 2021
1. Crypto classified as “Digital Assets”
2. Committee core is to “Regulate” Crypto
3. Government understands crypto is cutting edge, 2019 Bill outdated
4. Government wants to engage with industry
5. FinMin monitoring Crypto volumes in country
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.