The Reserve Bank of India (RBI) imposed a nationwide ban on banks to block its customers and organizations from facilitating fiat-to-crypto purchases and withdrawals earlier in April- with its deadline ending on the 5th of July.
Indian exchanges like WazirX, Koinex Loop, and Coindelta have announced peer-to-peer models to replace the old fiat-to-crypto trading models to go around the nationwide bans.
WazirX’s CEO Nischal Shetty highlighted the benefit of utilizing a peer-2-peer transaction system through WazirX as quoted here:
In a P2P model, the buyer and seller can deal with each other directly while WazirX acts as an escrow account for holding the cryptos during the transaction so that neither party cheats the other
Many crypto influencers and companies in India heavily criticized the RBI’s decision to initiate this nationwide cryptocurrency ban due to the fact that it left India behind in the global cryptocurrency race which was characterized by healthy regulations by the governments of some countries like Japan, Estonia, and South Korea. However, Nischal Shetty also responded to this in a tweet below.
WazirX P2P is coming soon. Don't worry at all. You can transfer money directly to each other and we will help with the crypto transfers and trading. India will be part of the blockchain revolution, always 💪 #isupportcrypto #cryptocurrency https://t.co/6IEsK4bZ7d
— Nischal (WazirX) ⚡️ (@NischalShetty) July 6, 2018
The Finance Ministry in India issued a statement last December saying,
Virtual currencies are not backed by government fiat. These are also not legal tender. Hence, VCs are not currencies. These are also being described as ‘Coins’. There is however no physical attribute to these coins. Therefore, VC are neither currencies nor coins.
The following statement issued by the Kotak Mahindra Bank is also another example of a statement issued by an Indian Bank urging their customers to stop trading in cryptocurrencies using fiat-to-crypto exchanges in India,
We here at Kotak Mahindra Bank request you not to make any transaction involving virtual currencies from your bank account. However, if done so, under regulatory guidelines, we would need to close your account without further intimation.
Hence, the future remains uncertain for the cryptocurrency market in India and glimpses of hope shine through companies like WazirX and Koinex Loop that promise to create the next generation of escrowed, safe peer-to-peer trading marketplaces to evade this nationwide cryptocurrency ban.
Trading Bitcoin is too complicated?
We highly recommend our Crypto-Starter-Kit to you!
Follow us on Social Media and subscribe to our free crypto newsletter!
Diskutiere mit uns!
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Blockchain
What is DeFi? An alternative to the traditional finance, Decentralized Finance is an emerging blockchain based field, based on the …
In November, Ripple peaked at its highest since 2018’s all-time-high, only to begin a sad bear run to its YTD …
Bancor - the automated market maker (AMM) protocol has massively increased it's total liquidity by 1000% to reach a significant …