According to Economic Times, Indian crypto exchange WazirX has opened an account with Kotak Mahindra Bank that will allow the exchange to send and receive payments from investors.
With this new collaboration, Kotak Mahindra has become the first Indian bank to embrace the crypto community after suffering through a major payment freeze imposed by high-level banks for almost 8 months.
Kotak Mahindra Bank to initiate business with WazirX
WazirX has opened an account with Kotak Mahindra that will help facilitate the exchange to pay and receive money from investors. The ET report outlines that the account will become operational once the mandatory paperwork has been filed and documented.
“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 is on,” a person familiar with the case told Economic Time
The ET report further highlighted that the Bank is also looking forward to initiating business with other prominent exchanges such as ZebPay to expand its service portfolio.
About a year ago, WazirX closed its account with ICICI Bank, India’s second-largest private bank following the news of RBI expressing qualms about cryptocurrency trading in the country. WazirX had later shifted its operations to MobiKwik, which is a digital wallet payment service in India, to send and receive money from investors trading on the exchange.
Back in 2018, the Indian government had adopted a rigorous stance on crypto by restricting its trade in the country. The ban was later struck down by the Supreme Court of India allowing banks to trade cryptocurrencies as long as they conduct due diligence and comply with the anti-money laundering regulations.
The news of Kotak forming a partnership with WazirX comes at a time when the Indian government is one step away from introducing a crypto bill in the parliament. As per Economic Times, the new cryptocurrency bill will be examined by the union cabinet first before it is introduced in the parliament later this week.
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Author: Juhi Mirza