Indian crypto exchanges flounder as banks cut ties after RBI frown – Reuters India

Indian crypto exchanges flounder as banks cut ties after RBI frown – Reuters India

MUMBAI, July 1 (Reuters) – Indian cryptocurrency exchanges are scrambling to secure viable, permanent payment solutions to ensure seamless transactions after banks and payment gateways started cutting ties with them, six industry insiders said.

The exchanges are struggling to cope after the central bank, the Reserve Bank of India (RBI), which has said it does not favour digital currencies, out of concern over their impact on financial stability, informally asked banks to steer clear. read more

Customer complaints have inundated all India’s key exchanges as the pullout by major payment gateways has hit transactions, according to social media and users.

“Banks are reluctant to do business,” said Avinash Shekhar, a co-chief executive of ZebPay, one of India’s oldest crypto exchanges that is not offering immediate settlement.

“We have been talking to several payment partners but the progress has been slow.”

Options being resorted to include tying up with smaller payment gateways, building their own payment processors, holding back on immediate settlements or offering only peer-to-peer transactions, the heads of five crypto exchanges said.

At least two exchanges have tied up with smaller payment processing firm, Airpay, as its larger peers
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