In India, Kotak bank is collaborating with WazirX, one of the largest stock exchanges in the country. With the agreement, Kotak will change its policy of not allowing cryptocurrency exchanges for months and will become the first major bank in the country to open its doors to the sector.
In India, where there has been serious uncertainty about cryptocurrencies for years, but which has received hundreds of millions of dollars of investment especially by US venture capital companies in recent months, positive developments have started to show themselves slowly.
According to the news of the Economic Times of the country media, Kotak, one of the largest banks, has made an agreement with WazirX, one of the largest crypto money exchanges. So, they paved the way to offer crypto money services to their customers. The following statements were used in the news that ET based on a person with knowledge on the subject:
“WazirX has opened an account for investors trading on cryptocurrency exchanges, where deposits and withdrawals can be made in connection with Kotak bank. The account has not been activated yet. On the subject, paperwork, KYC and some trials are still going on.”
As it will be remembered, last year, when the crypto uncertainty in India was even more intense, WazirX exchange closed the account is opened by making an agreement with ICICI Bank, one of the largest credit banks in the country. This move of the stock market came after the Central Bank of India, which is still negative about cryptocurrencies, made an opinion. WazirX later started offering such transactions with digital wallet and payment service company MobiKwik.
In the same period last year, banks such as HDFC Bank, Axis, and SBI also imposed restrictions on cryptocurrency transactions.
A Kotak executive contacted by ET said that he would not make any comments on the matter.
In India, in 2018, the central bank banned banks from providing services that facilitate users in cryptocurrency payments. The top court in the country, on the other hand, annulled this directive in March 2020.
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