Cryptocurrency 'market' closed on Paytm, Banks stopped the transaction, know why this happened
Welcome back to our informative blog site knowing steps360. Paytm Payment Bank has stopped cryptocurrency transactions on its platform. This rule has been implemented from 21 May. Now there will be no transaction of virtual or digital currency like Bitcoin, Ethereum, or DocCoin through Paytm. This decision has been taken following a directive from the Reserve Bank.
This decision of Paytm has been taken after the decision of the banks in which on 20 May it was said that they will no longer deal with the crypto exchange. An order has also been issued by the Reserve Bank about this. In view of this, first the banks, then the mobile wallet Paytm announced to stop the transaction.
Why the transaction closed
This has come to the fore in a report of 'Economic Times'. In the report, a CEO of cryptocurrency has said that Paytm has stopped the transaction of digital currency. However, Paytm has not given any official reason behind the closure of the transaction. Paytm also did not say that it has stopped the transaction of cryptocurrency only after a regulatory order.
These exchanges will affect
Recently, the Reserve Bank had asked its member banks to consider their working with the cryptocurrency exchange. Exchanges of cryptocurrencies such as WazirX, CoinCDX, and Jebpay deal with digital currency in India.
After this suggestion of the Reserve Bank, the banks refused and said that now they will not work with the crypto exchange. According to the report, the Reserve Bank also directed the payment companies to end their association with the crypto exchange. Only after this, the decision of Paytm has come to the fore.
After this recent decision of Paytm, many payment companies are standing in this line. It is possible that in the coming days they may also stop the transaction of cryptocurrency. Many crypto exchanges have said that payment companies are considering giving up the work of crypto transactions. They have come to know about this. Such incidents are being seen when the government has considered forming a panel to regulate cryptocurrencies.
What is the preparation of the government?
It is learned from the sources that it is being considered in the government that information about regulating crypto should be obtained by making a panel. The government is thinking about regulating cryptocurrency rather than banning it. It is also being discussed inside the Union Finance Ministry. Meanwhile, it is shocking for banks and payment companies to break away from the crypto exchange.
The government may regulate cryptocurrency
The central government may form a panel to regulate cryptocurrency. The work of this panel will be to consider every aspect related to the business and business of cryptocurrency. This panel will look into it and after doing a complete study about blockchain technology, will submit its report to the government. It is believed that cryptocurrency can be given the status of digital assets and not digital currency. The Union Finance Ministry is seriously monitoring the trend of fast-growing cryptocurrencies in the country and is talking to different parties about this.
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