Besides these options, some exchanges such as CoinDCX, ZebPay and BuyUcoin, among others, have partnered with payments firm Mobikwik to facilitate deposits. But, to be able to make these deposits via Mobikwik, crypto investors would first need to register and become Mobikwik users, said a person aware of the matter, who spoke on condition of anonymity. As payment gateways are not able to operate smoothly, Rangala said, the exchange has to go back to processing deposits manually. “It takes longer since it involves matching of transaction details with each user, which payment processors do automatically. We are developing some automation of our own and may also hire more accounting staff to enable a smooth service,” he said. When contacted, Mobikwik refused to comment on BloombergQuint’s emailed query.
ZebPay, another crypto exchange, is also trying to work around the problem by speeding up its internal infrastructure to automate deposits and withdrawals. For example, Bengaluru-based Bitbns has not faced an issue with deposits and withdrawals because it has an internal system for direct funds collection and transfer. “We do it internally and there has not been an issue with deposits and withdrawals so far,” said Gaurav Dahake, chief executive at the exchange. “But if our own bank account is frozen, then there will not be much that we can do.”
“While withdrawals have not been affected at this time, our payment processors for deposits face additional challenges since the process is a bit more complex,” said Vikram Rangala, chief operations officer at ZebPay. For exchanges, one option is to reduce their reliance on payment processors. This will allow them to continue servicing clients unless banks take even more stringent action.
“There seems to be confusion among the banking industry because they are not giving banking access to the crypto industry in India despite the SC verdict,” said Nischal Shetty, founder and chief executive at WazirX, which claims to be India’s largest crypto exchange by trading volume. But this disruption, said Dahake, is not new, as Indian crypto exchanges have been facing these issues for some time now. “Every time the service is shut by a partner payments processor or a bank, the hunt for finding a new one begins.” The development comes despite the Supreme Court’s March 2020 order, which set aside the Reserve Bank of India’s 2018 circular that barred banks and other financial institutions from facilitating transactions involving cryptocurrencies.
Using the funds already available in their crypto wallets.Liquidating some of the existing crypto holdings and using funds from the sale to carry out further trades.Using stablecoins, commonly known as crypto cash, to buy altcoins. These are tokens backed by fiat currency.A Cat And Mouse Game Meanwhile, crypto users are moving to alternate options such as:
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