Kotak pauses crypto trade with CoinSwitch Kuber

economictimes.indiatimes.com:

CoinSwitch Kuber, a large crypto intermediary, two persons told ET. What triggered the call is unclear, but sources said Kotak has decided to pause till the dust settles on cryptos. «There has been no fresh Reserve Bank of India directive asking banks to stay away from cryptos. But senior supervisory managers (of RBI) are telling some banks to exercise caution on cryptos till there is regulatory and legal clarity,» said a senior official of another bank. Kotak's stand could deal a blow to the unregulated industry. It follows digital wallet MobiKwik reportedly snapping its links with crypto-related payments since the beginning of April.

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Tough Phase MobiKwik had emerged as the sole payment option for the bulk of crypto traders and multiple crypto exchanges, with almost all banks shutting their doors to the industry. Indeed, some of the crypto exchanges were planning to approach Kotak for processing payments, as it had been doing business with CoinSwitch Kuber for the past few months. «They will now have to look for an alternative,» said a senior official with one of the bourses. «And clearly, they are running out of choices. Even Kotak was selective. While it was processing payments for CoinSwitch trades, the bank's talks with a large exchange fell through… This is the toughest phase for the crypto industry in India.» Kotak officials did not comment on the bank's decision while a spokesperson for CoinSwitch Kuber did not respond to a query from ET. Payment avenues for crypto transactions are being choked at a point when the