Indian private lender Kotak Mahindra Bank has reportedly partnered with the country’s one of largest crypto exchanges WazirX.
The news comes at a time when there is a lot of speculation in India regarding cryptocurrencies if they would be regulated or banned.
WazirX, which was on payment freeze by banking giants in India for eight months, has opened an account with the lender, the Economic Times reported citing sources.
“WazirX has opened an account with Kotak which can be used to receive and pay money to investors trading on the exchange. The account is yet to become operational. Paperwork, KYC and some testing are on,” a source was quoted by the publication as saying.
The tie-up will allow customers trading in crypto using WazirX to pay and receive money through the bank account.
India’s central banking authority has voiced its concerns regarding cryptocurrency, which led to WazirX closing its account with ICICI Bank, a key player in the Indian market.
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The Reserve Bank of India’s concerns caused other lenders such as HDFC, SBI and Axis to move away from crypto-related payments.
Notably, the Indian government is working on its bill on cryptocurrency, media reports have emerged that cryptocurrencies could be regulated by the Securities and Exchange Board of India.
The lender is betting on that possibility, the report said adding that it is also in talks with other crypto exchanges like Zebpay.