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Bitcoin, Ether go up; India’s Kotak Suspends Crypto Trading; China Warns of Digital Financial Risks — Crypto Moves

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Thursday, rising 2.70% to $41,266 as of 09:00 Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $3,107, up 1.48%, according to data from Coindesk.

Kotak suspends crypto trading

Meanwhile, Kotak Mahindra Bank, one of the few Indian financial institutions that initially welcomed crypto warmly, has now temporarily stopped processing payments for transactions with CoinSwitch Kuber, a major crypto intermediary, according to a report in EconomicTimes.

Even though the reason for this decision remains unknown, sources said that Kotak has decided to take a break until the dust settles on the cryptos.

Indian investors shocked after transfer network blocked

Major Indian crypto exchanges CoinSwitch Kuber and WazirX have disabled rupee deposits for buying cryptocurrency through a widely used state-backed transfer network, prompting users to renew their demands for regulatory clarity.

India has spent years working on a law to ban or regulate cryptocurrencies, with a central bank-backed ban on financial stability risks, though a recent decision to impose the income suggests acceptance by the authorities.

Wednesday’s decisions follow a one-line statement last week from the National Payments Corporation of India, operator of the state-backed United Payments Interface (UPI), which facilitates bank transfers, that it was unaware of its use by a crypto exchange.

CoinSwitch did not allow users to load deposits into its app, although they could still withdraw funds.

China warns of financial risks from NFTs

China on Wednesday warned of the financial risks associated with non-fungible tokens, as three industry bodies jointly issued guidelines to prevent the digital asset market from overheating.

NFTs are certificates of ownership of a unique digital item such as a video, recording, or cyber-artwork. These digital collectibles are gaining traction in China and have been adopted by tech companies such as Ant Group and Tencent Holdings.

“In recent years, China’s NFT market is getting hotter and hotter,” China’s banking, securities and internet finance associations said in a joint statement.

While NFTs can help China’s digital economy, they could also lead to speculative trading, money laundering and illegal financing, said the trio, which also issued a joint ban on cryptocurrency trading l ‘last year.

NFTs should not be used in the issuance of financial assets such as securities, insurance, loans or precious metals, said the statement posted on the China Banking Association website.

(With contributions from Reuters)