Crypto exchanges’ operations take a hit as lenders sever ties

Leading cryptocurrency exchanges, including WazirX and CoinSwitch Kuber, have suspended rupee deposits for new users on their platforms after some banks severed ties with them citing an informal guidance from the Reserve Bank of India (RBI).

The regulator’s move has come despite the Supreme Court in March last year quashing a ban on crypto related payments.

The RBI has informally told lenders to stay away from businesses dealing in cryptocurrencies, though there is no official communication in this regard, said a banker, on condition of anonymity.

As RBI is the regulator, banks have decided to go with what it says and wait for clarity on the Supreme Court order, the banker said. The central bank did not respond to a request for comment.