Paytm, an Indian e-commerce payment system and financial technology company, has banned Indian bank accounts suspected of cryptocurrency trading according to various media reports. The step taken by Paytm comes as a surprise as Bitcoin and cryptocurrency is legal in India.
Paytm has a large market in India. It is available in 11 Indian languages and offers online use-cases like mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies and educational institutions with the Paytm QR code.
Coin Crunch on Moday reported about the development via a tweet which said, “Many users are reporting Paytm is freezing bank accounts of Paytm payments bank account holders with suspicion of crypto trading. Crypto trading is not illegal. Banks are not restricted. However banks can act in their own interest, so users are advised to take caution”.
It is understood that the primary reason for freezing the accounts is that most banks can act in their own interest, even though Bitcoin is not illegal in the country. It is thus that the Noida-based firm has taken this precautionary measure.
Furthermore, as per the company, over 7 million merchants across India use this QR code to accept payments directly into their bank account. The company also uses advertisements and paid promotional content to generate revenues.
Paytm was found in August 2010 with an initial investment of $2 million by its founder Vijay Shekhar Sharma in Noida, a region adjacent to India’s capital New Delhi. It started off as a prepaid mobile and DTH recharge platform, and later added data card, postpaid mobile and landline bill payments in 2013.