Digital Banking Wallet service provider Mobikwik is no longer interested in crypto exchange support.
Since the very beginning, Indian crypto exchanges are not able to provide better crypto services because of a lack of support from government agencies and also from Banking regulatory bodies. In this situation, many crypto-interested banking players are not able to provide crypto-related banking services support.
According to local Indian news media outlets, e-wallet Mobikwik suspended its services for the crypto exchanges or crypto companies on 1 April. The significant issue with this decision of Mobikwik can be seen in the crypto offerings of Binance owned crypto exchange WazirX, because Wazirx was dependent on Mobikwik payment method to provide users a way to deposit funds.
Here it is still unconfirmed why Mobikwik withdrew its support for crypto exchanges but reports are claiming that Reserve Bank of India (RBI) subsidiary NPCI statements played significant roles in this decision of Mobikwik to crypto companies.
However, Mobikwik closed its services for crypto exchanges on 1 April but a statement from NPCI came on 7 April. And secondly Mobikwik’ payment services are not limited to NPCI’ UPI payment method but also it includes almost every payment options.
When Coinbase exchange failed to get regulatory approval to use a UPI payment gateway for its crypto exchange, Coinbase stated that it will work on this matter with official agencies to provide compliance-based services.
On 7 April, NPCI noted that no one crypto exchanges are legally under the approval to provide UPI-based payment services for crypto-related businesses because crypto stands under no legal status standard in India.
Few people raised questions about this official statement of NPCI and claimed that NPCI is a division of RBI, which is further under the Finance Ministry. So, on one hand, crypto trading is legal under the existing crypto tax bill of India, which was introduced by the Indian finance ministry, and secondly, RBI already released its statement that no one Bank ordered to suspend services for crypto companies.
Now it will be a matter of time if crypto proponents will challenge such statements legally in the Supreme Court.