Latest news with #PhonePeWallet
Business Insider
5 days ago
- Business
- Business Insider
XXKK Exchange Expands Global Fiat Withdrawal Network: Launches Localized Services in India
This upgrade integrates UPI, IMPS, local wallets, and bank card channels, providing Indian users with fast deposits, instant withdrawals, and multi-fiat-to-crypto conversion services. XXKK Exchange, a leading global cryptocurrency trading platform, today announced the launch of its localized fiat deposit and withdrawal services in India. This upgrade fully integrates UPI, IMPS, Paytm Wallet, PhonePe Wallet, Mobikwik, RuPay cards, Visa/MasterCard, and NEFT bank transfers, aiming to provide Indian users with a safer, faster, and more compliant crypto trading experience while further expanding its influence in blockchain and digital finance. Comprehensive Integration of Indian Payment Channels with Instant Processing This localization upgrade focuses on enhancing the deposit experience for Indian users, offering multiple convenient channels covering instant payment systems, bank transfers, bank cards, and local e-wallets: Instant Payment Systems: Supports UPI (Unified Payments Interface) and IMPS (Immediate Payment Service) for quick, high-frequency deposits. Bank Transfers: Enables NEFT (National Electronic Funds Transfer) for larger deposits, meeting the needs of high-volume traders. Bank Card Payments: Supports RuPay, Visa, and MasterCard for seamless card-based deposits. Local E-Wallets: Integrates Paytm Wallet, PhonePe Wallet, and Mobikwik to accommodate diverse payment preferences. Users can choose from these flexible deposit methods, whether for small, fast deposits or larger transfers, and instantly convert INR into USDT. For withdrawals, XXKK Exchange supports UPI and bank card channels, ensuring instant fund transfers and enabling fast fiat-to-crypto conversions. Emmalyn, XXKK's Global Head of Markets, stated: 'By covering UPI, IMPS, NEFT, bank cards, and local e-wallets, XXKK offers Indian users an unprecedented range of deposit options with true localization. Paired with instant withdrawals via UPI and bank cards, we've significantly lowered the barriers to crypto trading and accelerated digital asset adoption in India.' Multi-Fiat Support for Global Markets Beyond INR, XXKK Exchange supports crypto trading with multiple fiat currencies, including PHP (Philippine Peso), CNY (Chinese Yuan), USD (US Dollar), EUR (Euro), HKD (Hong Kong Dollar), THB (Thai Baht), and TWD (New Taiwan Dollar), offering a flexible cross-border crypto trading experience for global users. Global Reach with Local Focus The India localization marks XXKK Exchange's latest milestone following localized fiat integrations in the United States, Southeast Asia, the Middle East, and Europe. Backed by a global operational network, XXKK is building a crypto ecosystem that balances global scalability with local market needs. Currently, XXKK Exchange supports 24/7 on-chain withdrawals for multiple cryptocurrencies, including USDT, BTC, ETH, and TRX, with no minimum withdrawal limits for selected assets, giving users enhanced flexibility and security in managing their crypto and fiat assets. Security and Compliance First XXKK Exchange employs institutional-grade security mechanisms such as two-factor authentication (2FA), address whitelisting, real-time risk monitoring, and manual reviews for sensitive actions, ensuring comprehensive fund protection. The platform is also advancing its global compliance strategy, having obtained key international regulatory licenses: U.S. MSB License (No.: 31000222694535) Canada MSB License (No.: M22420435) St. Vincent FSA License (No.: 3393) 'These licenses reinforce XXKK's compliance foundation, establish trust mechanisms for crypto users, and provide a secure infrastructure for the sustainable development of digital finance,' added Emmalyn. Looking Ahead The India localization upgrade represents another step forward in XXKK Exchange's mission to bridge fiat and crypto globally. Going forward, the platform will continue to expand regional payment integrations and leverage blockchain innovation to advance the global crypto trading ecosystem further. XXKK Exchange is a leading multi-asset cryptocurrency trading platform founded by an international team with deep expertise in finance and blockchain. The platform is committed to bridging traditional finance and the Web3 ecosystem through innovative financial products and institutional-grade security, offering users low-cost, efficient, and transparent crypto trading. Users can join XXKK Exchange today to seize market opportunities and experience fast, secure, and low-cost crypto trading.
The Wire
05-06-2025
- Business
- The Wire
Lessons From the BluSmart Case: Why the RBI Must Act Now on Digital Wallets
Menu हिंदी తెలుగు اردو Home Politics Economy World Security Law Science Society Culture Editor's Pick Opinion Support independent journalism. Donate Now Government Lessons From the BluSmart Case: Why the RBI Must Act Now on Digital Wallets Sarthak Gupta 11 minutes ago The BluSmart incident reflects a clear regulatory gap in the manner in which the RBI has decided to govern the digital wallets. Reserve Bank of India. Photo: CC BY-SA 2.5, via Wikimedia Commons Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute now Another Indian financial watchdog has found itself quietly drawn into the BluSmart saga —this time, it's the Reserve Bank of India (RBI). According to reports, last month, the RBI initiated consultations with stakeholders to assess the viability and regulatory framework of digital wallets. This comes in the wake of thousands of BluSmart users, who had preloaded funds into their BluSmart's digital wallet for booking airport and intra-city rides, suddenly finding themselves unable to use, withdraw, or transfer their money. It was only after significant public outcry that the company announced it would refund the money, though it would take at least three months for users to get their funds back. It's important to note that BluSmart is one of India's largest consumer-facing mobility companies. Had this happened with some smaller regional business – say, a local coffee chain – users might not have got even a chance to recover a single rupee. The business could have shut down overnight, leaving customers with little more than hope. The incident reflects a clear regulatory gap in the manner in which the RBI has decided to govern the digital wallets. Differential treatment In 2009, the RBI for the first time decided to regulate digital wallets in the country, and since then, it has broadly categorised digital wallets into two buckets – open system wallets and closed system wallets. The first one, i.e., open system wallet, allows users to make payments not just to the entity which has issued these wallets but also to certain third-party entities after users load them from their preferred payment option – debit card, netbanking, etc. For example, the Phone Pe Wallet (not to be confused with Phone Pe UPI). The user just needs to load the Phone Pe Wallet and then can use the same for services within their Phone Pe app, like mobile recharges or insurance purchases and also on other platforms such as Amazon for shopping or Zomato for food delivery. There are specific rules governing these open system wallets. For instance, all the money that is loaded by the user in the wallet is stored in an escrow account maintained in a bank, not with the wallet provider, ensuring the safety of funds. Like a debit and credit card transaction, there has to be two-factor authentication (2FA) for all transactions that happen through the wallet, preventing unauthorised payments. Any grievance of the user has to be resolved within a strict and definitive timeline of 30 days. Further, there are cybersecurity norms, transaction monitoring, and reporting obligations to the RBI. The second one, i.e., closed system wallets, allows users to make payments only to the entity that has issued the wallet after users load it. For instance, if you have a Myntra wallet, it can be used solely to purchase clothes and accessories from Myntra. As per the RBI, since 'these instruments cannot be used for payment or settlement for third-party services,' their issuance and operation do not require approval or supervision from any regulatory authority. It is worth noting that this was not always the case. In the initial years when the RBI began regulating such digital wallets in the country, it had imposed certain limits and reporting requirements on entities offering closed system wallets. However, the most recent regulatory framework—specifically the version issued in 2021 —does not impose any such obligations. Hence, as long as funds are circulated internally within the entity which has issued the wallet, such arrangements are not subject to regulatory oversight. The only document that governs the relationship between the wallet issuer and user is the terms and conditions prepared by the wallet issuer and accepted by the user. Users hardly have any bargaining power to get any change accepted in the standard terms and conditions. For instance, if you refer to Clause 10 of BluSmart's terms and conditions, it states that the company shall not be responsible for any unauthorised use of the user's e-wallet, credit card, debit card, or net banking account during or after availing the services on the application or website. This raises a critical question of fairness: Should a company that solely owns and operates the app or platform be allowed to disclaim liability for unauthorised payments made through its interface? While it can be argued that a user always has the option to approach a consumer court in case of any grievance, the practicality of this recourse is questionable. Consider the fact that the average transaction value for mobile wallets in India is almost just Rs. 450. Pursuing legal action for such small-ticket disputes is often disproportionate, akin to buying a 50-cent chicken but spending two dollars on spices. The light-touch approach of the RBI The RBI has emerged not just as a regulator but as a facilitator of innovation in the financial ecosystem in the recent years. It has allowed innovation, experimentation, and market-led development with minimal intervention. Just a few weeks back, Sanjay Malhotra, RBI governor, in his speech at the inauguration of Digital Payments Awareness Week, observed, 'We have adopted a soft-touch approach to regulating the payments ecosystem and FinTechs, and through these regulations, the Reserve Bank attempts to balance these divergent sets of expectations'. India's offline payment aggregation industry is one of the biggest examples of this approach. The RBI has allowed offline payment aggregators – companies that provide QR codes, sound boxes, or swipe machines and process payments to operate without specific licensing or compliance frameworks. This has allowed rapid expansion of low-cost digital payments in rural and semi-urban areas, through players like Paytm, BharatPe, etc. Just for reference of readers who are not familiar with the fintech industry – the counterpart of offline payment aggregators, i.e, online payment aggregators – a company that processes payments for online payment transactions has to follow one of India's rigid compliance frameworks. However, when a uniform approach is applied indiscriminately, it often causes more harm than good. That's exactly what happened during the period from 2018 to 2021, when the number of digital loan apps mushroomed across the country in the absence of any specific direction from the RBI. These apps simply partnered with any available Bank or NBFC and started disbursing loans with instant approvals. Result – there were cases of excessive interest rates being charged, misuse of phonebook access to harass defaulting borrowers (and their relatives), and even instances of photo-morphing using borrowers' phone galleries, and suicides. The situation became so murky that the Union government had to step in. The finance minister directed the RBI to prepare a whitelist of legitimate digital lending apps, and the Ministry of Electronics and IT also blocked access to several unlawful platforms. Eventually RBI had to bring the Guidelines on Digital Lending, 2022, to specifically regulate the digital lending industry. This guideline did not just prohibit data misuse, but also fettered access to data by digital lenders. RBI's 'light-touch' approach With the closed system wallet, the RBI seems to have taken the same 'light-touch' approach, keeping in mind that no low money laundering risk the closed loop wallet present. Funds can only be used within a specific ecosystem and cannot be transferred to other users, restricting the movement of funds and thereby reducing the risk of concealing illicit transactions. However, incidents like the Bluesmart case have highlighted that risks extend beyond just money laundering. While it is understandable that the RBI seeks to avoid overburdening the market with excessive regulation, it can instead lay down just foundational principle like defining ownership of users on the fund being loaded, until it is utilsed, accountability of closed loop wallet provider to resolve issues of customer, transparency by mandating disclosure by closed loop wallet provider of features of wallet – fund expiry, refund policy, reloadability, and usage restrictions etc at onboarding etc. Closed system wallets continue to be the industry's preferred model, largely due to low customer acquisition costs and the absence of KYC requirements. A principle-based framework, rather than a prescriptive compliance-heavy one, would strike a balanced approach, avoiding burdens like escrow maintenance or mandatory two-factor authentication, while still establishing essential rules that safeguard consumer interests and foster trust. Sarthak Gupta is a lawyer with a focus on technology law and Fintech. He is available on LinkedIn here. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments. Make a contribution to Independent Journalism Related News The State of the Economy: India Inc's Profit Dips, Rupee Is Asia's Worst Performer Is RBI's New Plan for Bad Loans Just Another Quick Fix? India's Net Foreign Direct Investment Plummets by 96.5% to Reach Record Low RBI's Potential Record Dividend: Fiscal Relief or Long-Term Risk? 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