India recently announced its budgwhichhat is going to be an interim budget for the year 2024 in that speech by the finance minister that included everything about the interim budget of India 2024 there was no mention of cryptocurrencies and digitassetsets and there was a big amount of speculation among the Crypto community that what is going to be the future of the Crypto sector over here in India and wrote ten a very details article covering this entire topic at the same time you can check that out here.
But the fact that there has been a new decision that has been taken which is not directly related to the crypto sector buy has a very big impact on the cryptocurrency sector which is still going strong in India despite all of the struggles, as well as a roadblock, has this been imposed in front of it.
The Reserve Bank of India or the RBI has initiated a serious ban on tPaytmyTM Payments Bank which is one of the biggest digital wallets that was used by millions of users over here in India and that served as a very popular option for every transaction that was made for cryptocurrencies it is something that was a trendy choice among the Crypto community as tUPIupi network over here in India has a big share that Paytm payment Bank hacks.
The RBI has imposed a lot of sanctions on Paytm which have been done by giving the reason of regulatory concerns as well as multipoffensesces that the company has done to the regulations that have been for the financial sector in the country and under a lot of sections of Banking Regulation Act of the country RBI has imposed a band and all of the activities and services that Paytm used to offer on restricted.
The ban will be coming into effect from the end of February but the effects of the behavior already started showing how the stocks of the company started to fall quite immensely and the trust among people in the digital wallet as a payment option not only for crypto-related transactions but also as a digital wallet in the country it has gone down massively.
The verified cryptocurrency exchange in India didhavedana option of using Paytm Payments Bank to bring in the catch from their bank accounts to the exchanges and they can use that to buy digital acids and also do the just opposite of selling those digital assets and bring that money to their bank account by using Paytm payment bank and it was one of the most popular options that is used to choose on these changes and there for it is a very big blow for the Crypto industry over here in India.
However, er there are quite alternatives that people choose instead of Paytm payments bank on cryptocurrency Exchanges but it had one of the biggest shares of transactions that were done through itself and that we related to cryptocurrency which is why that is a big blow for the Crypto sector here in India but it is expected that there will be even better options that will pop up soon but tell them it will be a bit of a pain for the traders who are involved in the Crypto sector in India as they need to now find other options to get their transaction to stand and get their money in and out.
But all in all this decision will impact the volume of transactions that used to be done previously as the massive amount of transactions that were done through Paytm payments Bank will be missed and those things will be reflected in the trading volumes in the Crypto exchanges that operate in India and the industry will be saying something that will make it move in a different direction or my look for alternatives.
It will be interesting to see how things are going to look in a couple of months as all of these decisions are coming back to back we have seen in recent times foreign exchange has been banned in India and after that,t there was no mention of cryptocurrencies or Digital assets in the interim budget speech and now a ban on a fintech company which was having a massive share in the digital space of payments in the country.
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