Cryptocurrency traders and exchangers are dealing with an ongoing problem with many banks not interested in allowing transactions that deal with crypto exchanges.
According to sources, the problem started in February end. In recent weeks some banks have directed payment gateways to not permit crypto-related transactions. As a result, some cryptocurrency exchanges have been encountering difficulties in processing transactions over the last few weeks. Several investors have complained of being unable to invest, though virtual currency prices have been rising.
Advertisements by crypto exchanges during the IPL (Indian Premier League) along with booming trading volumes are thought to be the reason for the concern. This has come after the honorable Supreme Court has lifted the ban on crypto investing in March last year.
Most banks are thus wary of working with investors and cryptocurrency exchanges. One of India’s trusted cryptocurrency and Bitcoin exchanges, WazirX has removed the UPI option because banks aren’t offering UPI to crypto exchanges. However, not all exchanges appear to be affected.
There continues to be regulatory uncertainty, the main cause of the problem. The Reserve Bank of India and the Finance Ministry of India aren’t seen by many to be in favor of cryptocurrencies, although the Supreme Court has lifted the ban a long time ago. Due to this, there has arisen a lot of confusion, even though investors and trading volumes have been picking up.