Kotak breaks crypto ice with account for WazirX

Amid a growing perception that cryptocurrency could be regulated and not banned in India, Kotak has emerged as the first major bank to open its doors for the crypto community.

After almost eight months of payment freeze by most high-street banks that keep on avoiding crypto investors and bourses, Kotak Bank will do business with WazirX, one of the country’s biggest crypto trades.

“WazirX has opened an account with Kotak which can be used to get and pay cash to investors trading on the exchange. The account is yet to become operational. Paperwork, KYC and some testings are on,” an individual aware of the matter told ET.

About a year ago, WazirX closed its account with ICICI Bank, India’s second-biggest private lender following feelers from the Reserve Bank India which has always been (and continues to be sceptical of cryptocurrencies). A bulk of WazirX’s business shifted to MobiKwik, a digital wallet and payment service organization.

As the industry sensed the discomfort of the regulator, more and more number of large banks, including HDFC Bank, Axis, and SBI restricted payments installments involving crypto platforms and vendors.